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cost object and cost center

Former Member
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can any one please give me clear difference between COSTCENTER and COSTOBJECT with example.

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Answers (2)

Answers (2)

Former Member
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Costcentre is place where the cost is booked, the cost objective means its either Cost centre, Internal order, WBS element etc.,

Cost centre :

n organizational unit within a controlling are

epresents a defined location of cost incurrenc

he definition can be based on:

Functional requirements

Allocation criteria

Physical location

o Responsibility for costs

Part of a company seen as a separate area of

responsibility, location or cost-accounting entity.

Place at which costs occur.

Cost Objective :

Account 76500 requires an assignment to a CO object

Message no. KI235


You have not defined a CO account assignment for an account that is

relevant to cost accounting.

System Response

Account 76500 is defined as a cost element.

This means that you must always specify a CO account assignment.


Enter one of the following CO account assignmentsEnter one of the following CO account assignments

o Order

o Cost center / cost center/ activity type

o Sales order item (for a project or cost relevant)

o Project / WBS element

o Cost object (Process manufacturing)

o Network/ Network activities

o Business process

o Profitability segment

o Real estate object

The posting row affected is 002, account 76500.


Rama Mohan

Former Member
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venket cost center is a place or location where ur company costs incurrs u alway assign cost center to ur revenue a/c because it is related to exp. and income that where u are using ur co. cost what asset ur purchasing and in how much it costs.

Cost object is the main component of controlling module which include cost center , internal order, PA, wbs Business process etc.

if systen asks for assign co object the this not only cost center but all included component.

hope this can be use ful

please reward points.

Former Member
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Hi prem,

is there any relation for cost object and costelement.

Former Member
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yes ,primary cost element is linked with gl a/c which at the time of posting data u if ur gl a/c has its cost element then ur data will passes from FI to CO.