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Object documentationCost Centers Locate this document in the navigation structure

 

A cost center is an organizational unit or department (sales, services, IT, finance, marketing, engineering, and so on) that is used to allocate the cost of a business activity to an existing budget. Cost centers are usually described in a hierarchy or grouping so that a management structure may own multiple cost centers.

Cost centers are used for spend analysis in all sourcing documents. You can generate reports to show the activity in your cost center. SAP E-Sourcing can support a hierarchy of cost centers.

Typically, cost centers are imported from the financial or ERP system of record. You can also create and edit cost centers manually. Cost centers are custom optional data.

To create a cost center, proceed as follows:

  1. Navigate to   Administration   System Setup   Organizational and Accounting Info   Cost Centers   .

  2. On the Cost Center page, choose Create.

  3. On the Creating: Cost Center page, enter the required information.

  4. If this is a lower-tier cost center, choose Lookup in the Parent field. In the dialog box, select the parent cost center and choose OK.

  5. Save your entries.