cost center

[Former Member]

hello ppl...

can you plz tell me the difference b/w master cost center and cost center... is there any link b/w the two... in ps we assign a cost center for each activity . but when a person is hired, he is assigned to only one cost center.. i would be glad if anybody could clarify my doubt...

[Former Member · Accepted solution]

In HR when a person is assigned to a cost center, all the costs associated with that person (eg, salary ) is directly posted in that cost center.

Usually person will be assigned to a position. Position in turn will be assigned to sum departement in HR. Usually in SAP we assign cost center to these departments. Whoever hired under that department, their costs will be captured by this cost centers during the payroll run.

[Former Member]

Hi Archana,

when an employee is Active then he/She should be assigned to an Organisation(O) , Position(P) and cost centre(K) ,So these 3 objects were interlinked and this is known as master data maintenance of Employee, If an employee is Inactive/Pensioner then he/she doesn't have any Org assignment. But he/She should get the Pensioner benifits.So, these were assigned to special cost centre.

Regards,

Narendra.

[Former Member]

Hi,

IOn my view,

Maste cost center is the cost center which is assigned to root Org unit. and other cost centers are under the master cost center which are assigned to CUB units.

Thanks,

Vasu.

[Former Member]

Hi Vasu,

U r right. but whatever the unit/position we assign to cost center, that should be assigned to Master cost center. then only we can get it in 0001.

If u find any mystake in my view, feel free to clearify.

Thanks&Regards

Namrata

[Former Member]

hey thanks for the reply... but it would be nice if u can explain me how is the master cost center and the sub cost centers are linked???

cost center is created using a TC KS01 right.. is there any way we can link the sbu cost center to the master one???? because in project system we have a cost center for each activity. so at a time a person is assigned to more than one cost center how can this be done????

i dono if this is a relevant question... plz correct me if i am wrong...

[Former Member]

Hi Archana,

If the employee is assigned in more than 1 projects his costs can also be assigned to more that one cost center through Cost distribution infotype (0027) where his total costs (100%) will be apportioned to diff cost centers. We can also use WBS elements (if project cost is captured thru WBS) in 0027 infotype to distribute the costs of an employee

[Former Member]

thanks for the reply.. ya i saw the cost distribution infotype.... but i need to know how the master cost center is linked to the sub cost center... is there any way we can do this??

[Former Member]

There will not be any link between Master cost center and the other cost centers. Master cost center is nothing but a cost center. Since it is related to some root org unit we call it as Master cost center (it is just the naming convention we use to treat that particular cost center)

[Former Member]

You can see the master cost center of an employee on IT0001.