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Cost center hierarchy


I have a situation where there are 4 company codes assigned to 1 controlling area. The cost centers for all 4 company codes are different. The questions are-

1. Should all the cost centers be created under same hierarchy for all the 4 company codes?

2. While creating the cost center master data, they are created at the controlling area level and not company code. then how will we know, which cost centers belong to which company codes?

3. When assigning the cost center hierarchy to cost center during creation of cost center, how to assign them to a particular node in cost center hierarchy?


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  • Best Answer
    Posted on Nov 22, 2007 at 12:54 PM

    Hi Johan,

    How to assign cost center to a company code? It is created at the controlling area level in KS01.

    How to assign hierarchy in KS01 as it will give automatically the hierarchy defined at the controlling area?

    I am using 1 controlling area because consolidation is not required and I am using 1 chart of accounts.

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    • If you have assigned several company codes to one controlling area, you can fill in the company code in the cost center master data (KS01, Basic Data)

      If you want to assign a specific hierarchy node to a cost center, you first have to create all cost center groups; the hierarchy area is also in the Basic Data in KS01.

  • Posted on Nov 22, 2007 at 12:48 PM


    1. Within your controlling area you should use one standard hierarchy. However, you can use different hierarchies (KSH1) within your controlling area. E.g. a single one per company code. But if you want to use this option, why did you choose to assign these four companies to one controlling area?

    2. You can assign a company code to a cost center (KS01)

    3. In the cost center master data you can assign every cost center group from the hierarchy you want (hierarchy area).


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