What is cost center hierarchy in SAP CO - Controlling?

SAP Term: cost center hierarchy

• Component: CO

• Component Name: Controlling

• Description: A hierarchical structure that combines several cost centers according to certain criteria.

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• Key Concepts: 
  A cost center hierarchy is a structure of cost centers in SAP Controlling (CO) that allows for the grouping of cost centers into higher-level categories. It is used to assign costs to the appropriate cost center and to analyze costs at different levels of detail. 
  
  How to use it: 
  The cost center hierarchy is created in the SAP system by assigning each cost center to a higher-level category. This allows for the grouping of cost centers into higher-level categories, such as departments, divisions, or regions. The hierarchy can be used to assign costs to the appropriate cost center and to analyze costs at different levels of detail. 
  
  Tips & Tricks: 
  When creating a cost center hierarchy, it is important to ensure that the structure is logical and easy to understand. It should also be designed in such a way that it can be easily updated and maintained over time. 
  
  Related Information: 
  For more information on creating and managing a cost center hierarchy in SAP Controlling (CO), please refer to the SAP Help documentation.