SAP - FIN+CON : cost centers in SAP Consolidation concept

While cost centers themselves aren't the primary focus in SAP Consolidation, their data can certainly be incorporated and utilized. Here's how:

1. Cost Centers as Subassignments:

• You can assign cost centers as subassignments to your consolidation units (usually company codes). This allows you to analyze consolidated data with a cost center dimension.
• This approach provides flexibility for reporting and analysis across different cost centers within your consolidated entities.

2. Consolidation Cost Center Hierarchy:

• SAP S/4HANA offers a dedicated "Consolidation Cost Center Hierarchy" which you can use to structure and map cost centers from different subsidiaries into a unified, consolidated view.
• This helps in standardizing cost center reporting across the group, even if individual subsidiaries use different cost center structures.

3. Reporting and Analysis:

• You can leverage SAP's reporting tools (like Report Painter or SAP Analytics Cloud) to generate consolidated reports that include cost center information.
• This allows you to analyze consolidated financial data by cost center, providing insights into profitability, cost allocation, and performance across different areas of the business.

4. Integration with Controlling (CO):

• SAP Consolidation can integrate with the CO module, allowing you to bring in cost center-related data like actual costs, planned costs, and variances.
• This integration provides a more comprehensive view of cost performance across the consolidated group.

In essence:

While cost centers don't function as independent consolidation units, their data is essential for detailed analysis and reporting within the consolidated financial statements. SAP provides the tools and structures to incorporate cost center information effectively into your consolidation process.

Important Considerations:

• Standardization: If your subsidiaries have different cost center structures, you'll need to establish a mapping logic to ensure consistency in the consolidated data.
• Data Volume: Including cost center details can increase the volume of data in your consolidation system. Ensure your system has the capacity to handle this.
• Reporting Requirements: Clearly define your reporting needs to determine the level of cost center detail required in your consolidation process.

I hope this explanation is helpful! Let me know if you have any other questions.