Define Standard Hierarchy

You can create or change cost centers either using the relevant menu entry or directly in the standard hierarchy maintenance function.

Cost Centers that are created or changed from within the standard hierarchy have the status ‘Inactive’, that is, they are not handled as account assignment objects in Management Accounting. The assignments can only be checked and the cost center released once the cost center is ‘Active’.

If you want to assign a cost center to another hierarchy level, you can do this in the standard hierarchy maintenance by a simple reassignment of the cost center. In other words, you do not need to make changes to your cost center master data.

You can change assignments of the organizational units, company code, business area, or profit center during the course of a fiscal year only if the following conditions hold:

  • The currency of the new company code is the same as the currency of the old company code.
  • You have only posted planning data in the fiscal year
  • The cost center is not assigned to a fixed asset, work center or HR master record.

IMG ⇒ Controlling ⇒ Cost Center Accounting ⇒ Master Data ⇒ Cost Centers ⇒ Define Standard Hierarchy


Click on” Image” -(Create)


  • Write Group num & Description

Click on” Image” -(Create)


  • Click on Lower Level Group


  • Put Group name & Description
  • Click on “Save”

Now we can create cost center under This Group

Select this line item “Image

Click on “Create”Image

Then Select”Cost CenterImage


  • Cost Center : Give Cost Center Number
  • Name: Name of the Department
  • Person Responsible: Give the resp Person name for that Dept
  • Cost Center Category:Select the Dept from the popup
  • Then Click on “Save” & Enter

Like wise we need to create cost centers for other Departments




Jayanth Maydipalle


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