How to Create Cost Center in SAP

How to Create Cost Center in SAP or in Textile ERP? Answer is very simple. Cost center is accounting term of an ERP which control all modules. SAP cost center is for tracking department wise cost in an organisation. We need to define cost center first before implementation of ERP.

Elements of Cost Center

  • Cost center
  • Category
  • Hierarchy

Cost Center: It is an organisation unit

Category : Example of some categories are Administration, Logistics, Marketing, Merchandising, Commercial etc.

Hierarchy : It is hierarchy among category unit and sub sections