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:

• 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.

Window

Cost Center
Code Part Values

Related Window Descriptions

Cost Center
Code Part Values

Procedure

1. Open the Code Part Values window.
2. Create a new record.
3. In the Cost Center field, enter a name for the cost center you want to define.
4. Enter a description for the cost center in the Description field.
5. Specify the valid period of the cost center in the Valid From and Valid Until fields.
6. Save the record.

To register a defined cost center:

1. Open the Cost Center window.
2. Create a new record.
3. In the Cost Center list, select the cost center to use from the List of Values.
4. In the Site field, select the site to which you want to connect the cost center from the List of Values.
5. Save the changes.