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Cost center is an organization unit that represents a defined location of cost incurrence (area of responsibility)
in SAP CO, Cost center with cost element play a vital role in verifying, clarifying, and allocating where are costs incurred depending on your cost center creation concept you did "by a department, plant, activity".
KS: create cost center
Cost Center is, one of four master data types, a function in an organization that incurs its own costs, which may or may not add to its profit. Typical examples include Production, Administration, R&D, Marketing, and so on.
To create cost centers,follow this menu path: IMG: Controlling ➤ Cost Center Accounting ➤ Master Data ➤ Cost Centers ➤Create Cost Centers. Or use transaction code KS.
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