Cost Center Accounting Standard Hierarchy

Prior to creating any cost centers within your controlling area, you must first complete the standard hierarchy, which is the central cost center hierarchy created in your system and acts as the one repository for all cost centers. You can create additional, or alternative, hierarchies to meet additional planning or reporting requirements and for possible use in the allocation process. The hierarchy name is defined automatically, or you can define the naming convention yourself when the controlling area is created (see “The Controlling Area” in Chapter 8) and is utilized as the top node. You cannot assign cost centers at this level, so the standard hierarchy will require further development.

Keep in mind ...

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