What is cost center in SAP MFG-ME - SAP Manufacturing Execution?

SAP Term: cost center

• Component: MFG-ME

• Component Name: SAP Manufacturing Execution

• Description: The smallest segment of your organization for which you collect and formally report costs. You can assign supervisors and employees to a cost center for the purpose of tracking their time.

Smart SAP Assistant

• Key Concepts: 
  A cost center is a component of the MFG-ME SAP Manufacturing Execution system that allows users to track and analyze the costs associated with production processes. It is used to identify and measure the cost of production activities, such as labor, materials, and overhead. Cost centers are typically organized by department or product line. 
  
  How to Use It: 
  Cost centers can be used to track costs associated with specific production processes. This information can be used to identify areas of inefficiency or cost savings opportunities. Cost centers can also be used to compare costs between different production processes or departments. 
  
  Tips & Tricks: 
  When setting up cost centers, it is important to ensure that all relevant costs are included in the analysis. This includes both direct and indirect costs, such as labor, materials, overhead, and other expenses. Additionally, it is important to ensure that cost centers are properly organized so that they are easy to use and understand. 
  
  Related Information: 
  Cost centers are closely related to other components of the MFG-ME SAP Manufacturing Execution system, such as production orders and material requirements planning (MRP). Additionally, cost centers can be used in conjunction with other financial analysis tools, such as activity-based costing (ABC) and process costing.