What is cost center in SAP CO - Controlling?

SAP Term: cost center

• Component: CO

• Component Name: Controlling

• Description: An organizational unit within a controlling area that represents a defined location of cost incurrence. The definition can be based on: Functional requirements Allocation criteria Physical location Responsibility for costs

Smart SAP Assistant

• Key Concepts: 
  A cost center is a component of the Controlling (CO) module in SAP. It is a unit of organizational structure used to assign costs to a specific area of the business. Cost centers are used to track and analyze costs associated with a particular area of the business, such as a department or project. 
  
  How to use it: 
  Cost centers can be used to assign costs to specific areas of the business, such as departments or projects. This allows for better tracking and analysis of costs associated with those areas. Cost centers can also be used to assign budget amounts to each area, allowing for better budget management. 
  
  Tips & Tricks: 
  When creating cost centers, it is important to ensure that they are properly linked to the correct organizational structure. This will ensure that costs are accurately assigned and tracked. Additionally, it is important to ensure that cost centers are properly maintained and updated as needed. 
  
  Related Information: 
  Cost centers are closely related to other components of the Controlling (CO) module, such as internal orders and profit centers. Additionally, cost centers can be linked to other modules in SAP, such as Materials Management (MM) and Human Resources (HR).