Business Area association to Cost centers

[Former Member]

Hi,

The company's in different countries are configured as Business areas in the system and would like to know about the cost center hierarchy associtaion with the business area

Example:

001 Business area is for US

002 Business area is for China

In this scenario do we need to create a cost center "ADMIN" twice and assign them to Business Area 001 and other to Business Area 002.

Please advise

Thank you

[Former Member · Accepted solution]

Hi,

The Companies in different countries are not created as separate Company Codes in SAP. It makes more sense to create as separate company codes, as it can meet the local legal requirements of each country.

Thanks

Murali.

[Former Member · Accepted solution]

Hi Murali,

The company doesn't want to do legal report for other countries as they are dealt differently by the local accounting consultants. We thought business area would be the best option as to the company codes as they have a rapid development in business so that it will make it easy to add new business in other countries as business area (to cut the configuration time).

Thank you