Jul 062007

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.

 July 6, 2007    Add comments

  3 Responses to “Cost Center in SAP”

  1. detailed meaning of SAP Cost center

  2. There is no assignment of cost center to company code as you assign controlling area to company code then cost centers created in that controlling area become cost centers of that assigned company code.

  3. True, but at a granular level, you can choose company code at Cost center level. Please, check Cost Center Master data.

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