Cost center hierarchy change. How should i approach.

[former_member1009839]

Clint using:

Plastic: America,Europe, Asia

Chemical: America,Europe, Asia

Liquid : America,Europe, Asia

Want change :

America : Plastic,Chemical, Liquid

Europe: Plastic,Chemical, Liquid

Liquid: Plastic,Chemical, Liquid

What will be reporting Impact. What way i should change. PLEASE help me ASAP....

[former_member238061 · Accepted solution]

Hi Divyesh,

obviously, the company wants to change the view entirely.

I would check (cc = cost centre, PC = profit centre):

1  assignement of cc to pc => you might have to change that also.

2  allocation cycles  => are the cost receivers the same still

3  cc sets used in reporting => you might have to regroup (match with new reports now need
                                              as the view changed)

4  transaction in new environment => e.g. automatic account assignment (OKB9) =>

                                                 do you still post to the correct cc

5  Do you simply reassign (then just shift in OKEON or do you also have to renumber

    your cc (often the case) according to the new hierarchy?

6  Do you have to change substitutions?

7  The change you describe also let's us look to the revenue side (also refer to 1).

    => one further aspect my be a costing based CO-PA which allows for a reporting

         often without major changes as normally revenues would be registered according

         to area (America/Europe, Asia) and product group (plastic, chemical, liquid).

         I assume that in your target structure you meant Asia instead of Liquid though.

    => Some customers also want to see a PC-balance (also refer to 1).

         Then the changes you envision can be called major ones.

8   Define a cut-over from which on the assignment is valid (at best month-end).

I hope it helps (and that you evaluate...-)

With kind regards

Thomas

[Former Member]

Hi

Maybe you could do it as follows:

CO Area America              CO Area Europe                CO Area Asia

-CC Grp Plastic                 -CC Grp Plastic                 -CC Grp Plastic  

-CC Grp Chemical              -CC Grp Chemical             -CC Grp Chemical    

-CC Grp Liquid                   -CC Grp Liquid                  -CC Grp Liquid

I hope that I have understood your request.

Kind regards

Manette                                     

[Former Member]

Hi Dvyesh,

Technically I don't see any impact. From reporting perspective, business can report cost center data as per new hierarchical structure.

You need to re-assign the hierarchical group in cost center in case there are no further groups down to America/Europe/Asia. Otherwise just re-arrange the groups using KSH2

Pramod

[Former Member]

Technically you can have a straight flat structure in OKEON (one group and all CC in this group). That's a system requirement that you have to have all your cost centers in standard hierarchy - to keep things under control.

From reporting point of view you can have as much grouping as you want. Business people would create themselves the grouping they would need.

Cheers

J