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Can 2 cost center group share same cost center?

Former Member
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281

Dear Experts,

Can 2 cost center group share the same cost center?

Basically I'm looking at MATRIX structure where one cost center, say an Equipment shared by 2 different cost center groups (say one in "Location-A" cost center group, and the other one is in "Process-A" cost center group). This is to enable the management to be able to see the costs incurred in either by "Location" cost center group or "Process" cost center group.

The "Location-A" cost center group may tied to Cost center 101, Cost Center 102 and Cost Center 103. The "Process-A" cost center group may only tied to Cost Center 101, and other cost center 201 (which is also tied to other "Location-B" cost center group).

Please advise.

regards,

Abraham

Accepted Solutions (0)

Answers (3)

Answers (3)

ajaycwa1981
Active Contributor
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Hi

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The "Location-A" cost center group may tied to Cost center 101, Cost Center 102 and Cost Center 103. The "Process-A" cost center group may only tied to Cost Center 101, and other cost center 201 (which is also tied to other "Location-B" cost center group).

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If the above one is your requirement - Yes, its Possible....

But, as Greta said, these two groups should not be part of the Cost Ctr Hierarchy

br, Ajay M

Former Member
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Thanks Guys for replying..

Hi Ajay & Greta,

Are you all saying that I should use 2 different cost center hierarchy ( one is standard and the other is alternative)?

What would be the impact in term of reporting and cost center planning?

regards,

Abraham

ajaycwa1981
Active Contributor
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Hi Abraham

What I am saying is this...

a. If both the groups are part of Cost center Hierarchy (CCH)- System wont allow you to do this

b. If any one of the groups is part of CCH - No issues...

c. If none of the groups is part of the CCH - No issues

there wil be no impact on planning or any thing else

br, Ajay M

Former Member
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Hi..

I tested with tcode KSH1 to create a separate cost center group (not assigned to standard hierarchy). System allowed and I tested with cost center planning and reporting.. It seem ok..

Would there be any issue of using the above method?

regards,

Abraham

ajaycwa1981
Active Contributor
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Hi

Hopefully, no issues should be there

br, Ajay M

iklovski
Active Contributor
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No issue; it's standard.

Former Member
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The only difference between the standard hierarchy and alternative hierarchies is that each new cost center must be assigned to the standard hierarchy. Therefore you can always be sure that the standard hierarchy is "complete" which you can not for your alternative hierarchies (cost center groups).

Former Member
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Hi..

I read from other article, that Alternative Hierachy might not work well with NEW GL.

Is it true?

regards,

Abraham

Greta
Product and Topic Expert
Product and Topic Expert
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Hi Abraham,

its not possible to assign a cost center to several cost center groups in the standard hierarchy. Otherwise, the standard hierarchy would be inconsistent.

As stated in the online documentation under http://help.sap.com/erp2005_ehp_05/helpdata/EN/25/908fc66d8411d194f000a0c93031df/frameset.htm

'You can assign each cost center to only one group in the standard hierarchy, but to as many alternative groups as you require.!

Regards,

Greta

iklovski
Active Contributor
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Hi,

It's possible if group A is not a part of group B (and vice versa), i.e. these groups co-exist as parallel hierarchies.

Regards,

Eli