Cost Center in SAP

The smallest area of responsibility within a company’s overall organizational structure.

Cost centers collect direct and indirect charges from financial postings or internal allocations.

Only costs are collected in cost centers. Revenues are not collected.

Must be assigned to a standard hierarchy structure.

May define alternative hierarchy structures to support various reporting requirements.

Each Cost Center is assigned to a Company Code, Profit Center.

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One Comment

  1. Ram
    Posted December 30, 2010 at 10:48 pm | Permalink

    detailed meaning of SAP Cost center

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