Assess your financial reporting needs with the help of a Financial Accounting and Reporting (FAR) consultant and learn how to use profit centers most effectively.

Assess your financial reporting needs

A profit center is an SAP mechanism for grouping cost objects to align with your financial reporting needs. Profit centers also enable you to manage the granting of reporting, but not spending, authorizations.

If you have a new reporting or authorization need—or you are setting up a new department, lab, or center (DLC)—you should discuss your need with the department administrative officer (AO) or assistant dean (as applicable). Requests for new profit centers should be authorized internally before you begin discussions with VPF 's Financial Accounting and Reporting (FAR) team.

Review options with your FAR consultant

Before you send a request for a new profit center to FAR, discuss your reporting or authorization requirements with your FAR business consultant. Your FAR consultant will help you determine which approach will best meet your needs and will facilitate consultations with other central administrative functions as needed.

Determine or change a profit center hierarchy

If you confirm that a new profit center is the appropriate solution for your DLC, determine which reporting relationships best suit the new profit center. The hierarchy you establish will have an impact on the authorizations associated with the profit center.

Your written request for a new profit center must identify the hierarchy under which it will fall. If you want to change the hierarchy of an existing profit center, email your request to dept-request@mit.edu.

Submit a request for a new profit center

Once you’ve received internal authorization and confirmed the hierarchy of your new profit center, complete the Request for New MIT Profit Center or Organizational Unit form and email it to dept-request@mit.edu.

The Details

Assess your financial reporting needs

A profit center is an SAP mechanism for grouping cost objects to align with your financial reporting needs. Profit centers also enable you to manage the granting of reporting, but not spending, authorizations.

If you have a new reporting or authorization need—or you are setting up a new department, lab, or center (DLC)—you should discuss your need with the department administrative officer (AO) or assistant dean (as applicable). Requests for new profit centers should be authorized internally before you begin discussions with VPF 's Financial Accounting and Reporting (FAR) team.

Review options with your FAR consultant

Before you send a request for a new profit center to FAR, discuss your reporting or authorization requirements with your FAR business consultant. Your FAR consultant will help you determine which approach will best meet your needs and will facilitate consultations with other central administrative functions as needed.

Determine or change a profit center hierarchy

If you confirm that a new profit center is the appropriate solution for your DLC, determine which reporting relationships best suit the new profit center. The hierarchy you establish will have an impact on the authorizations associated with the profit center.

Your written request for a new profit center must identify the hierarchy under which it will fall. If you want to change the hierarchy of an existing profit center, email your request to dept-request@mit.edu.

Submit a request for a new profit center

Once you’ve received internal authorization and confirmed the hierarchy of your new profit center, complete the Request for New MIT Profit Center or Organizational Unit form and email it to dept-request@mit.edu.

Did You Know?

Use the Recommended Revenue G/Ls to identify appropriate G/L numbers for revenue transactions.
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