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Creating Profit Center Standard Hierarchy

In this SAP CO tutorial, you will learn about the step-by-step procedure for creating a profit center standard hierarchy.

What is Profit Center Standard Hierarchy?

Profit Center standard hierarchy is also known as a tree structure in SAP CO system, is a hierarchical data that contains all the profit centers in the SAP controlling area.


Follow the below SAP IMG navigation path to create a profit center standard hierarchy:

SPRO → SAP Reference IMG → Controlling → Profit Center Accounting → Master Data → Profit Center → Define Standard Hierarchy

IMG path

How to Create Profit Center Standard Hierarchy?

Please follow the steps below in order to create a profit center standard hierarchy in SAP CO:

Execute t-code KCH1 in the SAP command field.


Now on the next screen enter the Controlling Area and Profit Center Group for which you want to create a Standard hierarchy.

Next, click on the Lower Level button to create a new hierarchy.

Lower Level

And click on the Profit Center icon to assign a Profit Center group.

profit center icon

Now click the Save button at the bottom of the screen to save the changes made on the hierarchy level.


You will get a confirmation message Data was saved on your screen.


You have successfully created a profit center standard hierarchy in your SAP CO system.