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Former Member
Dec 29, 2015 at 08:27 AM

Cost booking on cost centers


Hi All,

Currently i am working in engineering & construction implementation project. In this project, we have a scenario like this.

They have one construction sector, Under the construction sector they have roads division, buildings division and water division.

Under the roads division, they have multiple road projects like project 1, 2, 3 etc... The same will be applicable for buildings division and water division as well.

Now the scenario is suppose they have some HR&Admin cost at Construction sector level, roads, buildings and waters division level..Also they have HR&Admin cost at each and every projects level in under roads division, buildings division and water division.

For creating new cost centers in SAP, We have suggested two options.

1. Create new cost centers for each and every project wise, division wise and sector wise.

2. Create one common cost center at projects level, division level and sector level.

Request you please advice me on this above process.

Is there any other options to reduce the number of cost centers instead of creating the more cost centers?

Best Regards,