New cost center standard hierarchy

[Former Member]

Dear all,

We were requested to create/change to a new cost center hierarchy to meet new reporting requirements. Currently we are running ECC 6.0 EHP 5. How this can be accomplished without using landscape transformation. I know EHP 6 offers functionality to change cost center groups and activate new hierarchies, how can we do the same on with EHP 5?

Thanks in advance for looking into this

[Former Member]

Hi Izzy,

From this I understood that you have a cost center standard hierarchy where capturing cost based on client's requirement. Now, they want to know the cost details in another way.

You can fulfill it by creating alternative hierarchy where you can accommodate cost centers however you want.

From standard SAP, you can create only one standard hierarchy but alternative hierarchies you can go for many based on requirement.

Regards

Srinivas Salpala

[Former Member]

Hi Srinivas,

The want a new hierarchy, to report by functions and reflect the cost collected by each function specially service functions. My questions was how to replace or switch to this new hierarchy also if any cost center changes are required, how to do this keeping historical data integrity?

[Former Member]

Hi Izzy,

Pls let me explain my understanding with an example clearly so that the issue will be resolved:

Standard hierarchy we can create only one and can create N number of alternative hierarchies.

Eg:

1. Cost center Standard hierarchy Name - ABC. Under this I have two groups with 2 sub groups and cost centers each:

ABC: (std. hier)

     a) Production equipment (group1)

               i: Own equipment

                        a) 123EQP (cost center 1)

                         b) 456EQP (cost center 2)

               ii: Hire equipment

                         a) 111EQP (cost center3)

                         b) 222EQP (cost center4)

     b) Supporting Equipmet (group2)

               i: Own equipment 

                        a) 333EQP (cost center 5)

                         b) 444EQP (cost center 6)

               ii: Hire equipment

                         a) 555EQP (cost center7)

                         b) 666EQP (cost center8)

In the above scenario I can get the cost center report based Production equipment cost which includes own and hire vehicles.

But If I want to capture the total hire equipment cost from two groups (production and supporting equipment) it cant be possible through standard hierarchy.

In this case, I will create one alternative hierarchy and create two groups based on my requirement i.e. Own and Hire. It follows like below:

1. DFG (Alternative Hierarchy)

     1) Own equipment

             a) 123EQP (cost center 1) 

             b) 456EQP (cost center 2)

             c) 333EQP (cost center 5) 

              b) 444EQP (cost center 6)

     2) Hire equipment:

             a) 111EQP (cost center3) 

             b) 222EQP (cost center4)

             c) 555EQP (cost center7) 

              b) 666EQP (cost center8)

In this way you can get own and hire cost separately:

To create alternative hierarchy just create a cost center group in KSH3 and under the tree give the required groups with relevant cost centers.

Whenever you want to change cost centers, you can remove from the alternarive hierarchy based on your requirement.

This is my understanding Izzy......

Regards

Srinivas Salpala