Skip to Content
author's profile photo
Former Member

Cost centre wise budgeting

Hi All,

Can any one explain how to do budgeting cost centre group wise?

Thanks in advance,

Manisha

Add comment
10|10000 characters needed characters exceeded

  • Follow
  • Get RSS Feed

1 Answer

  • author's profile photo
    Former Member
    Posted on Apr 18, 2007 at 11:43 AM

    With txn KPZ2, you enter budget values for cost center or cost center group. If availability control active you may prevent to exceeed budget. You create cost center groups by txn KSH1

    Add comment
    10|10000 characters needed characters exceeded

    • Former Member

      I have a question.

      The purpose of the cost centre is to control the cost at different levels. If the budgeting is not done at the cost centre level but at the cost centre node than is it better to make the node as the cost centre instead of the multiple cost centre below it.

      E.g in the present scenerio the budgeting is done at cost centre node level. There are 7 cost centre below this node. Now one of the cost centre is taken as the representative and the major expenses as Power and Direct labor are put in this. Other petty expenses are directly put in the respective cost centre.

      Is this a good pactice. Also at present they are not having full CO implementation. They do not have the assessment and distribution cycles.

      Please suggest that if there is large no of Cost centre than what will be the impact when complete cost centre accounting, Product costing, PA and PCA will be implemented in ECC 6.0.

      Thanks for he reply.