Cost Centers - SAP Documentation - SAP Help Portal

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Cost centers are grouped together into decision, control, and responsibility units. You use cost centers for differentiated assignment of overhead costs to ... ShowTOCCostCenters Definition Organizationalunitwithinacontrollingareathatrepresentsaclearlydelimitedlocationwherecostsoccur.Youcanmakeorganizationaldivisionsonthebasisoffunctional,settlement-related,activity-related,spatial,and/orresponsibility-relatedstandpoints. Use Costcentersaregroupedtogetherintodecision,control,andresponsibilityunits. Youusecostcentersfordifferentiatedassignmentofoverheadcoststoorganizationalactivities,basedonutilizationoftherelevantareas(costdeterminationfunction)andfordifferentiatedcontrollingofcostsarisinginanorganization(costcontrollingfunction). Youcanassignactivitytypestoacostcenter.Theseactivitytypesdividethespecificactivitiesthatcanbeproducedinacostcenter. Structure Beforeyoucreatecostcenters,youdefinea hierarchicalcostcenterstructure (see: StandardHierarchies ).  Note Costcenterstructuresandcharacteristicsdependontheaccountingobjectiveyouarefollowingandthecostaccountingsystemyoudecidetoemploy. Endofthenote.



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