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Chapter 18 ■ Customizing the Controlling Module
Update the following fields:
Name: Enter the IT Serv. Cost. This is a short description of your secondary cost
element.
Description: Enter the IT service cost. This is a full description of your secondary
cost element.
CElem Category: Enter 42 – Assessment as your cost element category.
After updating the screen, click the Enter
your work.
button on the top-left side of the screen and save
■■Note
You can change, display, and delete cost elements after saving and you can also display any
changes you made.
Cost Center Accounting
A cost center, simply put, is a function in an organization that incurs its own costs, which may or may not
add to its profit. Typical examples include Production, Administration, R&D, Marketing, and so on. Cost
center accounting helps to monitor costs to ensure they are within budget.
In order to customize the Cost Accounting feature, you will configure the following settings:
• Define the standard hierarchy
• Create a cost center group
• Define cost elements for activity allocation
• Create activity types
• Use statistical key figures
• Change activity output/price planning
• Compare cost centers: actual/plan/variance
Define the Standard Hierarchy
A standard hierarchy is simply a tree structure that allows you to structure cost centers in a controlling area
in a systematic manner.
Problem: As its functional consultant, Company C900 plc has asked you to define the
standard hierarchy for their controlling area C900, which contains all their cost centers
and the appropriate cost center groups using the standard hierarchy structure.
■■Note
It is possible to change an existing hierarchy supplied by SAP system or create a new one.
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