Creation of Cost Center in SAP MM

Ratings:
(4.3)
Views:2116
Banner-Img
  • Share this blog:

Creation of Cost Center

CONTROLLING

Controlling provides information for management for decision-making.

If facilitates coordination, monitoring, and optimization of all processes in an organization.

COST CENTER

The organizational unit within a controlling area that represents a defined location of cost incurrence is called Cost Center

Tcodes for Creation of the Cost Center are

  • Define Standard hierarchy - OKKP
  • Creation of Cost Center - KS01
  • Creation of Cost Element - KA01

COST ELEMENTS

Cost Elements Describe the origin of costs.

The cost element classifies the organization-valuated consumption of production factors within a controlling area.

Primary Cost Elements

Primary cost elements are used for direct posting and must be accompanied in GL a/cs in FI.

If you want to enrich your career and become a professional in SAP MM, then visit Tekslate - a global online training platform: "SAP MM Training"   This course will help you to achieve excellence in this domain.

 

Customization

Creation of Std. The hierarchy for Cost center

SPRO -> Controlling -> General controlling -> Organization -> Maintain  Controlling Area

  • Click Position and enter your controlling area
  • Select your controlling area and click the details button.
  • Enter the field Cost Ctr. Std Hierarchy with some hierarchy name.
  • Click the save button.

Creation of Cost center

SPRO -> Controlling -> Cost center Accounting -> Master data -> Cost center -> Create Cost center

  • Set Controlling Area to our controlling area.
  • [On menu bar -> Extras -> Set Controlling Area]
  • Enter Name, Description, Person responsible, Cost Center Category as F for production, Std. Hierarchy, Business Area as 0001, and Currency INR and click the save button.

Creation of Cost Element

SPRO -> Controlling -> Cost center Accounting -> Master data -> Cost Elements -> Create Cost element

Set Controlling Area to our controlling area.[On menu bar -> Extras -> Set Controlling Area]m

Enter Cost Element as 400000 and valid from date and in the basic data tab enter name and description and cost element category as 1 (1 for Primary cost/cost reducing revenue)

Get In-Depth Knowledge on SAP MM Click on:

You liked the article?

Like : 0

Vote for difficulty

Current difficulty (Avg): Medium

Recommended Courses

1/15

About Author
Authorlogo
Name
TekSlate
Author Bio

TekSlate is the best online training provider in delivering world-class IT skills to individuals and corporates from all parts of the globe. We are proven experts in accumulating every need of an IT skills upgrade aspirant and have delivered excellent services. We aim to bring you all the essentials to learn and master new technologies in the market with our articles, blogs, and videos. Build your career success with us, enhancing most in-demand skills in the market.


Stay Updated


Get stories of change makers and innovators from the startup ecosystem in your inbox