WBS and Cost Center

[former_member555628]

Hi Gurus,

What is the relation between Cost Center and WBS element? Both the cost center and WBS element are collector of costs and revenue elements and WBS element comes in play when Project is involved. But why when A/C assignment category is P., why we find Cost Center, G/L account and WBS element? What is the relation between them here?

Thanks,

Kumar

[Former Member]

HI,

In Project systems the work is broken down in to a project. Hence the category P. This is typically used for Project types of works. The project further ids classified in to networks. the network comprise of the activities and each activity is assigned a WBS element to which the cost is incurred.

Thus same like in an industry when the cost for any particular activity be it procurement or sales, we assign the cost centre to which the cost shall be accumulated similarly here in a project we have the WBS elements. the activities duration can be trapped based on the network where in the time is calcu;lated based considering the floats.

The G/L account has to be assigned here to the WBS element. Thus for a particular Project and a G/L account u have a detailed analysis as to what is the cost incurred on that element.

Hope this helps.

Regards,

Prasanna

Award pls if helpful