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Re: [sap-acct] Cost Centers for Head Office - Is It Standard to Create Cost Center for Each Sub Department

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Reply from tilgulkarcn on May 23 at 6:21 AM
Hi,

Actually this is business decision. SAP would allow you to create as many
cost centres as you want or you need.

However, prudent thing would be to ask if there is significant cost
accumulation to required cost centre or is it some paltry insignificant
amount. If so then it can be termed as one . To continue your example it
could be only accounts , or payable or co or receivable as the case may be.
Further at any given point you realize that you require new cost centre
that can be created. Only drawback is in that case you will not get
retrospective report.

Hope clear,

All the best.

CNT

---------------Original Message---------------
From: allaf-rudwan
Sent: Monday, May 23, 2016 6:01 AM
Subject: Cost Centers for Head Office - Is It Standard to Create Cost Center for Each Sub Department

Hi,
We are designing cost center hierarchy for our company
which having : finance department , HR , ... etc
Now the question, is it standard to create cost center for each sub department?
Let's say in finance department there are : AP - AR - Cash - GL - Bud & Reporting.
Is it necessary to create cost center for each sub division?

 
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