cost centre hierarchy

[Former Member]

What s the purpose of dealing with cost centre hierarchy?(Financial->Cost accounting-> cost centre hierarchy)

Where does this actualy fits into?

Regards,

vasanthi.

[wilma_wang · Accepted solution]

Hello vasanthi,

Please look for the information on Cost Center via B1 online help.

1. Financials->Cost Accounting->Define Cost Center Hierarchy, here

you can define a new template as you need, add department as

Slibling and add various expenses/revenues as the Child to relevant

department.

2. Financials->Cost Accounting->Profit Center - Report-> Select the

Dimension used in the template from the drop down list then tick the

radio button before 'Template' and select the template you have defined,

then click 'OK'.

Link between cost center hierarchy and chart of accounts:

First of all, you define the various cost centers or departments in your

company as profit centers.

Then assign revenue and expense accounts to the profit centers so that

any data relevant to a profit center can

be updated automatically for all transactions entered in the system.

(This is where we have a link between chart of accounts and cost center

hierarchy).

Costs are allocated to the profit centers using information that you

define in a distribution rule. This means that any costs incurred willbe

allocated to the profit centers on the basis of a specific key.

If you decide that the way in which costs are allocated no longer

reflects the way in which your company works, you simply change the

distribution rule as required.

Regards,

Wilma Wang

SAP Business One Forums Team

[Former Member]

Check the following thread

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