Define Cost Center

Explanation

Use this activity to define and register new cost centers used in activity-based costing. A cost center is a source of cost. It is here that the costs for different parts within a company are defined. A cost center can represent whatever you want ut to represent, i.e. energy cost, HR Department cost, etc. A cost center is created per cost set, which enables the cost center costs to differ between different cost sets.

Prerequisites

This activity has the following prerequisite:

• Sites must be defined.

 

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.

Pages

Code Part Values
Cost Center

Activity Diagrams

BDR Set Up Activity Costing Basic Data