Master Data

SAP Overhead Cost Management

Organizational Units & Master Data
A Grp Operating
Operating Concern Concern (9100)

A Grp Controlling
Controlling Area Area (1000)

Profit Centers

Inform
Teleco
Ethylene ation Corporate
Pharma Polyolefins Power mmuni
Propylene techno common
cation
logy

A Ltd A1 Ltd HQ
Company Codes 9100 9200 1000

Gen Sales and

Cost Centers Purchasing
Services Marketing
R&T
13… 16…
14… 15…

Other Cost Objects Orders Cost Objects

Cost Element

Description
 A cost element classifies the organization's valuated consumption of production
factors within a controlling area
 Primary Element - costs that originate outside the company; relate directly to the
income statement in FI and must be included in the FI Chart of Accounts
 Secondary Element - costs that result from internal allocation activities; NO
relation to G/L accounts in FI. These accounts are exclusively for cost accounting
and are only maintained in CO
Cost Element vs GL Account
Financial Controlling
Accounting
•Cost Centre Accounting

Chart of Accounts
Balance •Internal Orders A
Sheet •Product Costing co ll pr
st im
Inc lin lem ary
e
•Profitability Analysis
Accounts
om ked en
e S t o ts
Ac
Adjustment co tatem
ce Accounts un
n
ala t ts ent
B
No Shee ts in

Cost Elements
o u n lin g Income Primary
c l
Ac ntro Statement Cost
Co Accounts Elements
d ary
o n n ts
c
•General Ledger
Secondary o Se leme l
•Accounts Payable N t E ncia
s
•Accounts Receivable Cost Co Fina nting
•Fixed Assets Elements I n ou
c
•Treasury Ac
Cost Centre

Description
 Organizational unit within a controlling area that represents a defined location of
cost incurrence. The definition can be based on:
 Functional requirements
 Allocation criteria
 Physical location
 Responsibility for costs
 Defines the smallest area of responsibility within the company that causes and
influences costs; the lowest level to which you can meaningfully assign direct and
indirect costs
Cost Centre Standard Hierarchy
Enterprise Company Functional Area Cost Center
A group xx01 - Production 9101000 – Production Common
A Ltd
Standard xx02 - Maintenance 9101011 – EG- 1 Plant
9100
Hierarchy xx03 - Utilities
xx04 – Engineering & Projects
xx05 – Quality Assurance
A1 Ltd
xx06 – Production Planning
9200
xx07 – Production Handling
xx08 –Warehousing & Storage

A11 Ltd xx09 –Executive Office

9300 xx10 - Finance 9110000 – Finance
xx11 – Human Resources 9111000 – Human Resources

s xx12 – Information Technology 9111001 – Housing Services

o de
N A111 Ltd xx13 - Purchasing 9111002 – Training Centre
9400 xx14 – General Services
xx15 – Safety & Security
ects
xx16 – Sales & Marketing bj
stO
xx17 – Research & Technology Co
xx18 – Company General