What is cost object in SAP PA-CM - Compensation Management?

SAP Term: cost object

• Component: PA-CM

• Component Name: Compensation Management

• Description: An object to which personnel costs can be assigned, for example, salaries, or benefits. The following types of object can be cost objects: Organizational unit Position Job Work center Employee

Smart SAP Assistant

• Key Concepts: 
  A cost object is an entity in SAP's Compensation Management (PA-CM) component that is used to track and manage costs. It can be a cost center, an internal order, a project, or a profit center. It is used to assign costs to different areas of the organization and to track the costs associated with each area. 
  
  How to use it: 
  Cost objects are created in the PA-CM component and can be assigned to different areas of the organization. They can be used to track costs associated with each area, such as labor costs, materials costs, and overhead costs. The cost object can also be used to assign budget amounts to each area and to monitor actual costs against budgeted amounts. 
  
  Tips & Tricks: 
  When creating a cost object, it is important to ensure that all relevant information is included. This includes the name of the cost object, the type of cost object (cost center, internal order, project, or profit center), and any other relevant information such as budget amounts or cost categories. 
  
  Related Information: 
  For more information on cost objects in SAP's Compensation Management component, please refer to the SAP Help documentation.