How to Activate Profit Center Accounting in Sap S4 Hana
Dummy and Default Profit Centers 
Definition
DummyProfitCenter
A central default value in each controlling area that is applied when postings are made to an account assignment object for which no profit center has been assigned. You can establish which objects are not assigned to profit centers by analyzing the postings assigned to the dummy profit center. You can use assessment or distribution to move data from the dummy profit center to the desired profit centers.
Default Profit Centers
Profit centers that, instead of reflecting an organizational area of responsibility, are used to collect costs, revenues, or postings made to balance sheet accounts within a posting period. At the end of a period, you can use assessment or distribution to move data from the default profit center to the desired profit centers.
Default profit centers are also referred to as clearing profit centers.
Unlike the dummy profit center, default profit centers can be derived using other details (see the section "Structure" below).
Use
You portray Profit Center Accounting as part of new General Ledger Accounting, that is, the scenario Profit Center Update is assigned to at least one of your ledgers in new General Ledger Accounting. If this is the case, then the following holds:
Unlike in Profit Center Accounting, it is not necessary in new General Ledger Accounting to create or use a dummy profit center. When postings are made to account assignment objects that are not assigned to a profit center, no profit center is used for the postings, that is, the Profit Center field remains empty in the corresponding line items. As with postings made to dummy profit centers, you can use assessment or distribution to forward postings made without a profit center to the desired profit centers.
If you have created a dummy profit center, we recommend that you do not use it deliberately as a default profit center. For such cases, define separate profit centers.
End of the recommendation.
If you use document splitting , the use of a dummy profit center can even produce undesired effects. For example, document splitting distributes payables to the dummy profit center when no profit center is assigned to the account assignments of the relevant expense items. It is subsequently not possible to manually transfer the payables.
If you have activated document splitting for profit centers, we recommend that you do not use dummy profit centers.
End of the recommendation.
If you want to ensure that a profit center is assigned in all line items, you can specify in Customizing that the Profit Center field is a required entry field. Note, however, that the system then terminates whenever postings are made to account assignment objects to which no profit center has been assigned and the error message "Balancing field " Profit Center " is not filled in line item" is issued.
If you still use classic Profit Center Accounting alongside new General Ledger Accounting, you have to create a dummy profit center.
Structure
DummyProfitCenter
You should not intentionally use the dummy profit center as a clearing profit center (that is, you should not assign data intentionally to your dummy profit center for the purpose of allocating it later). For such cases, define separate profit centers.
You create master data for the dummy profit center in Customizing for Financial Accounting (New) under 
The dummy profit center shares the same structure as other profit centers. The only difference is that, in the case of a dummy profit center, the Dummy Profit Center indicator is set in the Customizing settings of the profit center master data.
As with other profit centers, you can change and display the dummy profit center in the application menu.
Default Profit Centers
You create the master data for default profit centers in the same way as you create the master data for your "real" profit centers. For more information, see Creating Profit Centers (Individual Processing) .
Default profit centers share the same structure as other profit centers.
Unlike the dummy profit center, default profit centers can be derived using other details, such as company codes or accounts. You can do this in the following ways, for example:
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By using the IMG activity Assign Default Profit Center to Accounts
(in Customizing under
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By using substitution rules, or
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By implementing BADIs
You can create and use any number of default profit centers in each controlling area.
How to Activate Profit Center Accounting in Sap S4 Hana
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