You must assign cost centers to the organizational units, and, if required, to the positions in your organizational plan, for the transfer of costing scenarios between CO and Personnel Cost Planning to take place.

The principle of inheritance applies to cost center assignments. This means that an organizational unit "inherits" the cost center assignment of its parent organizational unit, unless you specify another cost center. Positions also inherit the cost center assignments of the organizational units where they are assigned, unless you specify otherwise.

To assign cost centers, you must provide the following information:

• Cost center code,

• Controlling area code

You assign cost centers by creating Relationship infotype records between cost centers and the organizational units, and if required, the positions in your organizational plan. You can do this in Detail Maintenance or Simple Maintenance.

You can limit the cost centers that can be selected, by setting a default controlling area. Because you must provide both a cost center code and a controlling area code to identify cost centers, setting a default controlling area limits the cost centers that can be selected.

You can set default controlling areas in Personnel Planning in the following ways:

1. You can set a default controlling area in table T77S0, item PPINT.
   
   The system automatically applies the default to all organizational units, except where you define an Account Assignment infotype record or a Relationship infotype record.
2. You can identify a default controlling area for selected objects using the Account Assignment Features infotype.
   
   (This is done in Detail Maintenance.)

Relationship infotype records always override any defaults set. Default controlling areas set in Account Assignment Features infotype records override the default set in T77S0.