Create Cost Center / Unit & Copy Attributes - A summary of the activity

A cost center / unit is defined at the business unit level in the organization structure. A cost center can be termed as an entity into which a business organization is demarcated for the purpose of costing. Cost centers are defined based on the reason for their incidence or according to the area of responsibility. A typical example of a cost center could be a department, equipment, an individual or a group of individuals. You can classify cost centers into nine different types based on the business requirements. An individual can also be assigned the responsibility of a cost center.

A cost unit is defined for measuring the costs on a wider level than a cost center. Cost units can be defined for entities like products, services, projects, customers, brands, activities etc. A cost unit is defined more for the purpose of analysis and reporting.

This page allows you to create a cost center or a cost unit and to copy attributes. You can set the type of the cost center or cost unit and also specify the organization unit to which the responsible individual belongs. You can also define the date range during which the cost center or cost unit would be in effective use. This page allows you to copy the attributes from an existing cost center, viz. Cost element Mapping, Cost Center Structure and Cost center rule definition to the newly defined cost center. It also allows you to define multiple cost centers at a time for a cost center type. The system saves the details of the logistics organization, business unit, company and the organization unit along with the cost center details. Financial postings can be made for the cost center or unit after it has been mapped to a cost element, which is mapped to an account code.

Click "Creating Cost center / unit & copy attributes" link for more details.