Definition and classification
A Cost center is an organizational unit in accounting to which the costs of an external assignment are assigned. That way spending can be shown against the departments, projects or sites that caused it.
Only this assignment makes visible which area causes how much external personnel – the basis for solid analysis and fair internal charging.
How does the cost center flow through the process?
If the cost center is carried along as early as the staffing request and in Time tracking , it flows automatically through to Invoice verification – with no manual reposting. Time tracking often allows multi-level capture against projects, orders or cost centers.