Cost Center (draft)

The cost centers represent a division of the organization where costs are incurred. This division can be set up based on:

• Geographical location.
• Areas of responsibility.
• Functional requirements.
• Allocation criteria
• Activities/Services provided.

The cost center hierarchy is a structure to which every cost center is assigned (to a node of its hierarchy).

This structure should reflect:

• The internal areas of responsibility.
• The controlling and decision-making structures in the organization.

Each level or node in a cost center hierarchy is a cost center group.

Use the standard hierarchy maintenance app to:

• Create a cost center with status inactive.
• Reassign a cost center to another hierarchical level.

Required Data of Cost Centers:

• Controlling Area.
• Company code.
• Standard Hierarchy node. (cost center group)
• Category
• ID + Name + Description
• Valid dates
• Person responsible.

(Profit center is nor required)

Text for examples.

Manage Cost Centers app.

Manage Global Accounting Hierarchies app.