Customizing Logic around Cost Center Categories

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3.  Cost Center Master Data

Cost Center Categories

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• Added by Brendan O'Brien, last edited by Brendan O'Brien on Jul 24, 2012  (view change)
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Purpose

The purpose of this WIKI document is to provide a clear overview of the system logic and behaviour related to categorizing Cost Centers.

Overview

Cost Center categories provide the ability to safe guard your postings to cost centers as they will prevent non-category costs being posted to the wrong cost center, in addition it provides greater organizational ability across your cost objects. After reading the following WIKI content you will have a clearer understanding of the purpose of the cost center category and also the customizing logic around them.

Cost Center Category purpose

The Cost Center category is an indicator in the cost center master data, which specifies the category for the cost center. Examples include administration, production, or sales & distribution. You can use our own cost center categories or use those supplied by SAP.

Cost Center categories enable you to assign the same characteristics to similar cost centers. For example, you can allow particular activity types only for particular cost centers. This is useful to prevent production activities from being posted to administrative cost centers by mistake. You can also use the cost center category for cost calculation, where it controls what percentage of the overheads applies to that cost center category.

Customizing Logic around Cost Center Categories

In Customizing, you can define lock indicators for each cost center category, or specify that the meaning of quantities on cost centers is allowed. When you assign a cost center to a particular category (you do this when creating the cost center), the corresponding lock indicators and allowed values for this category are proposed as default values for this cost center.

The above image illustrates how cost center categories might look in a typical organization using SAP systems.