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Former Member

Business Area association to Cost centers

Hi,

The company's in different countries are configured as Business areas in the system and would like to know about the cost center hierarchy associtaion with the business area

Example:

001 Business area is for US

002 Business area is for China

In this scenario do we need to create a cost center "ADMIN" twice and assign them to Business Area 001 and other to Business Area 002.

Please advise

Thank you

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3 Answers

  • Best Answer
    author's profile photo
    Former Member
    Posted on Sep 27, 2007 at 07:25 PM

    Hi,

    The Companies in different countries are not created as separate Company Codes in SAP. It makes more sense to create as separate company codes, as it can meet the local legal requirements of each country.

    Thanks

    Murali.

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    • Former Member

      Hi Murali,

      The company doesn't want to do legal report for other countries as they are dealt differently by the local accounting consultants. We thought business area would be the best option as to the company codes as they have a rapid development in business so that it will make it easy to add new business in other countries as business area (to cut the configuration time).

      Thank you

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    Former Member
    Posted on Sep 27, 2007 at 07:17 PM

    Yes. you need to creat it twice as you can only assgin once BA in cost center.

    Assign points if helpful

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    Former Member
    Posted on Sep 27, 2007 at 07:34 PM

    Hi,

    The heirarchy that is being used my most of the companies is as below:

    TEST_HIER

    -


    Co. Code

    -


    DEPT

    -


    ADMIN

    -


    001

    -


    ADMIN

    -


    002

    I hope this helps you.

    Thanks,

    Ashok

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