What is cost center in SAP SRD-MD-OM - FDN-Organization Management?

SAP Term: cost center

• Component: SRD-MD-OM

• Component Name: FDN-Organization Management

• Description: An organizational unit that represents a defined location of cost incurrence, and for which costs are recorded separately. The definition can be based on functional requirements, allocation criteria, physical location and responsibility for costs.

Smart SAP Assistant

• Key Concepts: 
  A cost center is an organizational unit within an enterprise that is used to track and measure the costs associated with a particular activity or process. It is a component of the SAP system's organizational management module, which allows for the efficient management of organizational structures and processes. 
  
  How to Use it: 
  Cost centers can be used to track and measure costs associated with a particular activity or process. This includes costs related to personnel, materials, and other resources. Cost centers can also be used to allocate costs across different departments or activities. 
  
  Tips & Tricks: 
  When setting up cost centers, it is important to ensure that they are properly linked to the appropriate organizational units. This will ensure that the cost center data is accurate and up-to-date. Additionally, it is important to regularly review cost center data to ensure that it is accurate and up-to-date. 
  
  Related Information: 
  Cost centers are closely related to other components of the SAP system's organizational management module, such as activity types, cost elements, and internal orders. Additionally, cost centers can be linked to other components of the SAP system, such as materials management and financial accounting.