Finance & Controlling
What is Cost Center?
A CO object representing an organizational area where costs are incurred, such as a department.
Cost centers are organized in a standard hierarchy and are used for planning, allocations, and reporting. They are master data owned by controlling. Validating cost center derivation on postings is a common test.
Related transaction codes
Related terms
Controlling
The SAP module for management accounting, covering cost centers, internal orders, product costing, and profitability analysis.
Controlling Area
The CO organizational unit within which cost accounting is performed; one or more company codes are assigned to it.
Activity Type
A CO unit of output from a cost center, such as machine hours, valued at a planned rate.
Assessment and Distribution
CO period-end allocation cycles that move costs from sender cost centers to receivers using defined rules.
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