Cost center hierarchies

Cost center hierarchies can be created, and existing cost center hierarchies can be edited in preparation for cost allocation schemes and cost allocation executions. A cost center hierarchy represents the current cost center structure within a company and allows the assignment of costs to definable cost centers. 

Cost center hierarchies consist of single and/or collective cost centers. Cost distribution is available for collective cost centers where costs can be distributed to subordinated cost centers or another collective cost center by defining the type of cost distribution. If less than 100 percent of the costs are distributed, the leftover costs are transferred to the lowest position in the hierarchy called 'Not allocated'.