How to create a cost center in SAP? Go to the below shown path and click create cost center (Tcode - KS01)and below is the initial screen of the cost center creation screen The basis parameters needed to create a cost center are: - 1.       Controlling Area – e.g. NA00 2.       Cost center and valid date Note: - Primary cost element – Material, travel,  Secondary cost element – Overhead charge Important Tables for cost center:- CSKA(Chart of account data), CSKB( Controlling  area data), CSSK(Cost master data) etc Different settings w.r.t cost center 1.       Create a cost center – ex: CC-CA000, CC-MA000, CC-AS000 2.       Now create a statistical key figure -e.g. EMP000 3.       Now create a secondary key element – e.g. PLA000, MAI...

What is a cost center in sap CO? We also use Cost center in tally which is an accounting software, the underlined meaning of cost center is SAP in both the cases but in SAP cost center is created and handled quite differently. First, it is handled under the Controlling Module and it is stored as master data. Cost center in SAP is an organizational sub unit, it is the sole discretion of the company either it wants to consider a unit a cost center or a profit center. How a cost center and profit center is different in sap CO? So now you will ask how profit center is different from a cost center right? And how can you classify an organizational unit as cost center because at the same time it is also generating profit by making sales etc. right? Let me explain. Consider an example: - you have a company in Illinois, USA but that office will have some expenses let's say w...