Creating cost center / unit

This activity allows you to define a cost center or a cost unit. Tell me more.

Select the “Create Cost Center / Unit” link under the “Cost Setup” business component.

The “Create Cost Center / Unit” page appears.

Enter the following fields:

Cost Center / Unit	Use the drop-down list box to specify whether you want to create cost centers or cost units.
	Center – Indicates an entity into which an organization is divided for the purpose of costing.
	Unit – Indicates an entity into which an organization is divided to measure costs at a wider level than a cost center.
	The system displays “Center” by default.
Detail / Group	Use the drop-down list box to select whether you want to create a “Detail” or a “Group” cost center / unit.
	Detail – Indicates the entity into which the organization is demarcated for the purpose of costing.
	Group – Indicates that it is a cluster of cost center or a cluster of group cost centers.
	The system displays “Detail” by default.
Cost Center / Unit Type	Use the drop-down list box to select the type of cost center / unit for which you want to create cost center / unit. All the cost center / unit types that have been defined in the “Set Parameters” activity of this business component will be available for selection in the alphabetical order.
Effective Date	Use the drop-down list box to select the date from which the cost center / unit is to be effective. All the start dates of the MAC periods that have been defined for MAC years that are in the “Open” status will be available for selection in the chronological order. The system displays the earliest “Open” MAC period by default.

Note: The date selected in this field must be before or the same as the “Expiry Date” field.

Expiry Date

Use the drop-down list box to select the date on which the cost center / unit is to expire. All the end dates of the MAC periods that have been defined for MAC years that are in the “Open” status will be available for selection in the chronological order. The system displays the latest “Open” MAC period by default.

Enter the following fields in the “Cost Center / Unit Details” multline:

Note: At least one row must be entered in the multiline.

Cost Center / Unit	A unique code identifying the cost center / unit (Alphanumeric, 10). Mandatory.
Description	A description of the cost center / unit (Alphanumeric, 40).
Long Description	A detailed description of the cost center / unit (Alphanumeric, 255).
Responsibility	The code identifying the employee who is responsible for the cost center (Alphanumeric, 20).

Note: If “Responsibility Validation Against Employee Master” parameter has been set to “Yes” in the “Set Parameters” activity, the employee code entered in this field must be valid for the organization unit.

Org Unit

Use the drop-down list box to select the organization unit for which the cost centers are being defined. The system lists all the organization units to which the “Employee Information” business component corresponding to this “Cost Setup” business component has been mapped. The system leaves the field blank by default.

Note: The organization units will be available for selection only if “Responsibility Validation Against Employee Master” parameter has been set to “Yes” in the “Set Parameters” activity. At least one organization unit must be selected for the cost center / unit.

Click the “Create Cost Center / Unit” pushbutton to create the cost center / unit.

The system saves the details of the newly created cost center / unit. This information is saved at the business unit level of the organization structure. Along with the newly created cost center / unit details the system also saves the details of the company, business unit and logistics organization corresponding to the selected organization unit.

The system also updates the status of the cost center / unit as “Active”.

To proceed carry out the following:

Click the “Map Cost Center to Operation Entities” link provided at the bottom of the page, to map cost center to operation entities.

Prerequisites

Mandatory

“MAC Calendar” must have been defined in this business component.

Optional

“Employee Master” must be available for the business unit where this “Cost Setup” business component has been deployed.

What you can do in this page

Create cost center / cost unit

Categorize cost center / unit

Create cost center / cost unit

This page allows you to create a cost center or a cost unit. You can specify whether you want to create a cost center or a cost unit.

Set the “Cost Center / Unit” field to “Center” if you want to create a cost center.
Set the “Cost Center / Unit” field to “Unit” if you want to create a cost unit.

Categorize cost center / unit

You can categorize a cost center / unit as a “Detail” or a “Group” cost center / unit.

Set the “Detail / Group” field to “Detail” if you want to classify the cost center / unit as a “Detail” cost center / unit.
Set the “Detail / Group” field to “Group” if you want to classify the cost center / unit as a “Group” cost center / unit.