FIN-CS and Cost Centers Design Thought

This is a good overview of how to handle cost centers in SAP Group Reporting. You're absolutely correct that there's no dedicated, out-of-the-box hierarchy for cost centers alone. It's designed to work primarily with organizational units like companies, profit centers, and segments.

Here's a breakdown of your points with some extra details:

1. Define Cost Centers as Additional Reporting Dimension:

• This is a fundamental step. By including cost centers as a reporting dimension, you make that data available for analysis and reporting within Group Reporting.
• Key takeaway: This doesn't create a hierarchy, but it allows you to filter and slice your consolidated data by cost center.

2. Custom Hierarchies:

• You can create hierarchies that combine cost centers with other organizational units. For example, you might have a hierarchy that goes: Company -> Profit Center -> Cost Center.
• Challenge: Maintaining these custom hierarchies can become complex, especially in large organizations with many cost centers.

3. Use of Financial Statement (FS) Item Hierarchy with Cost Centers:

• This is a powerful technique. By tagging FS items with cost center information, you can drill down from a consolidated financial statement to the underlying cost centers.
• Example: You could see the consolidated "Salaries" expense and then drill down to see how that expense is distributed across different cost centers.
• Tools: This works well with reporting tools like SAC and Analysis for Office.

4. Reporting in SAC or Analysis for Office:

• These tools provide flexibility for reporting on cost center data. You can create custom reports, visualizations, and dashboards.
• Advantage: SAC, in particular, offers powerful hierarchy creation and visualization features that can be very helpful for cost center reporting.

5. Data Model Extensions:

• This is the most technically complex approach. It involves extending the Group Reporting data model to incorporate cost center attributes.
• Use Case: This might be necessary for very specific reporting requirements that can't be met with standard functionality.

In summary:

Your assessment is accurate. SAP Group Reporting focuses on legal and management consolidation. While it doesn't directly support cost-center-driven consolidation, the flexibility of the system allows you to achieve this through various workarounds and configurations.

Important Considerations:

• Data Granularity: Ensure your source systems capture cost center information at the required level of detail.
• Maintenance: Custom hierarchies and data model extensions require ongoing maintenance.
• Reporting Needs: Clearly define your reporting requirements to choose the most suitable approach.

By understanding the options and limitations, you can effectively incorporate cost center information into your Group Reporting processes and gain valuable insights into your organization's performance.