Define Cost Center
Explanation
Use this activity to define and register new cost centers used in activity-based costing. This task, to be performed by a system
administrator or an equivalent person, is mandatory for using activity-based
costing (ABC).
Prerequisites
This activity has the following prerequisite:
System Effects
As a result of this activity:
- A cost center can be used in the calculation of activity-based
costing.
- Different cost center costs will be automatically assigned to the cost center automatically.
Window
Cost Center
Code Part
Values
Related Window Descriptions
Cost Center
Code Part Values
Procedure
- Open the
Code Part
Values window.
- Create a new record.
- In the Cost Center field, enter a name for the cost center you want
to define.
- Enter a description for the cost center in the Description field.
- Specify the valid period of the cost center in the Valid From and Valid
Until fields.
- Save the record.
To register a defined cost center:
- Open the
Cost Center window.
- Create a new record.
- In the Cost Center list, select the cost center to use from the List of
Values.
- In the Site field, select the site to which you want to connect the cost
center from the List of Values.
- Save the changes.