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RE:[sap-acct] SAP Cost Center Hierarchy

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Reply from allaf-rudwan on May 11 at 2:02 AM
Very good explanation, Nikki, this is wonderful advice, and it is my target, but again, the consultant told me yesterday:

" , that if I go like this way, and after go live, I will face a big trouble every time when I want to create new cost center, it requires too many steps of configuration which I can't do it my self and it requires a paid consulting to do it every time, while he now does the setting to be automatically configured as sequential numbering, and he asked me to sign a proof that this coding will be under my responsibility if I selected it " end.

This type of technique I don't understand it, and I asked one of my friends who working as a controlling in another company, he said never required that complex steps, it is just one minutes to create cost center with manual code (not sequence).
So, what is your opinion? Is it really required that long & complex steps of configuration & allocations?

---------------Original Message---------------
From: Nikki Klein
Sent: Tuesday, May 10, 2016 4:19 PM
Subject: SAP Cost Center Hierarchy

Hi

Your consultant is partly right, but I had read your email to suggest that your new Cost Center number could include the "A" or the "B", in which case all reports could be run for the range A000 to A999, and would pull in all existing Cost Centers for region A.

Or you could do what I commonly see - all the "A" region Cost Centers begin with a "1", so 1001, 1005, 1009; while all the "B" region Cost Centers start with "2". That kind of thing. Users find they quickly recognize that if a Cost Center starts with "2", why then it must be Japan. It also means that you can then say that - for example - all the Admin Cost Centers are 005, so you can create 1005, 2005, 3005 and so on, keeping to a common standard across all regions.

The sequential numbering concept in SAP is very true for master records where the number is meaningless, such as Material numbers, but it is not generally true for other Master data like Cost or Profit Centers, or G/L accounts. Typically there people do want to build in some kind of meaning.

Nikki

 
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