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Cost Center Creation and Management in SAP

Cost centers are used to track where costs occur in an organization. Costs are assigned to the appropriate cost center as they are incurred, which is a critical step for cost reporting. Common costs like rent, utilities, and computer expenses often need to be allocated across multiple cost centers. Cost centers are organized in a standard hierarchy. The document then outlines the 21 step process for creating a cost center in SAP, which involves entering information like the cost center code, name, description, responsible person, department, and address details. It also describes how to change an existing cost center, display cost center details, lock a cost center to prevent changes, and delete a cost center.

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Subhash Reddy
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500 views6 pages

Cost Center Creation and Management in SAP

Cost centers are used to track where costs occur in an organization. Costs are assigned to the appropriate cost center as they are incurred, which is a critical step for cost reporting. Common costs like rent, utilities, and computer expenses often need to be allocated across multiple cost centers. Cost centers are organized in a standard hierarchy. The document then outlines the 21 step process for creating a cost center in SAP, which involves entering information like the cost center code, name, description, responsible person, department, and address details. It also describes how to change an existing cost center, display cost center details, lock a cost center to prevent changes, and delete a cost center.

Uploaded by

Subhash Reddy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Cost Center

Cost centers are used to track WHERE costs occur in the


organization. As costs are incurred, they are assigned or
posted to the appropriate cost center. The posting and
assignment of costs to cost centers is a critical step in using the
CO module. Frequently, costs like rent, computer exp, utilities
etc. have to be allocated to cost centers to provide accurate
cost [Link] centers are organized in a Standard
Hierarchy.
Steps for Creating Cost center
There is followong path for selecting T- code for cost center
creation.

T- code- KS01

1) Enter the controlling area i.e 1000 and press enter key.

2) Enter the cost center code (Including alpha and


numerical).
3) Enter the valid date and period.
4) Press enter key or click on master data.

5) Enter the name and descrition.


6) User responsible not required.
7) Enter the person responsible for particular cost center. We
can keep the person degination.
8) Select the dept name and cost center category.
9) Enter the hierarchy area.
10)
Enter the profit center is compulsory.
11)
Click on control button.

12)

Click on record qty.

13)
Click only actual revenues and plan revenues under
the lock area.
14)
Click on commitment updates.
15)
We can enter the address and communication details
for particular cost center to click on address and
communication button.
16)
Click on save button.
17)
To change the cost center details T- Code- KS02.

18)
Enter the cost center name and press enter data or
click on master data.
19)
Under histroy button there is one option for change
document , under this option we can see the changes
details for particular cost center.
20)
To display the cost center details T- code- KS03.
21)
To lock the cost center T- Code- KS02.

22)
Click on control button and click on all option under
the lock option.
23)
For delect cost center the T- code KS04.

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