In what situations cost center is maintained at the position, org unit and at the person level?

[Former Member]

Hi all,

I would like to know your experience on maintaining cost center at different objects. In what situations cost center is maintained at the position, org unit and at the person level. What is the best practice?

[Sanky]

Hi Pankaj,

If you are asking cost center assignment best practice then i will saty it at department level or org unit level. Because most of the company are doing this way to get the know how cost is going to department to department level and it's helping to FI to get the costing.

Now postion and person both are requirement dependent and both are quite similar because we are maintaining through IT27 i.e. cost distribution.

I am giving one example to you by which you can able to understand.

Organization is having one position like VP and it's looking after three department operation then how you will assign this salary costing for him. For this case Organization is having a overhead salary cost ceneter for VP and you will assign this to Postion level but for the person level organization said it would 3:1 that means out of 100% costing 25% will book to Overhead Cost center and rest 75% will be booked to Three department overhead cost center. So what you will do ? You will use IT27 where you will assign three departmental cost center with 25%, 25% & 25%.

Hope so you undersatnd.

Regards,

Sankarsan