Cost center is one of the accounting flexfield components in Oracle General Ledger, which is part of Oracle Financial modules in Oracle EBS
The accounting flexfield may have segments like:
1 Company
2 Dept......[cost Center]
3 Account
4 Sub-Account
5 Product
Cost centers indicate functional areas of your organization, such as Accounting, Facilities, Shipping, and so on.....
Oracle Assets Module and Oracle Projects Module requires to qualify a segment as cost center in your account
Benefits are you can group your Assets by Cost Center or Department, ascertain project cost for a particular project based on cost centers and so on...
Cost center is a department in an Organization.
Then again it depends on your line of business. LOB.
For example if your Operating units are Vision Ops US and Vision Ops UK you will have different cost centers tied to these two units.
A cost center will depend on your company and how it views things. Keep in mind this is still part of the g/l account accounting flexfield. A key flexfield will contain its own value set, independent of other Oracle tables. Now you may create values in the value set for the segment that is the cost center that may correspond to, say, your HR Organization untis, but that will be only because you created them that way. If you add a new HR Unit, it will NOT show in the cost center value set until someone goes into that maintenance and adds the value there as well. Just have to understand that relationship.
The accounting flexfield may have segments like:
1 Company
2 Dept......[cost Center]
3 Account
4 Sub-Account
5 Product
Cost centers indicate functional areas of your organization, such as Accounting, Facilities, Shipping, and so on.....
Oracle Assets Module and Oracle Projects Module requires to qualify a segment as cost center in your account
Benefits are you can group your Assets by Cost Center or Department, ascertain project cost for a particular project based on cost centers and so on...
Cost center is a department in an Organization.
Then again it depends on your line of business. LOB.
For example if your Operating units are Vision Ops US and Vision Ops UK you will have different cost centers tied to these two units.
A cost center will depend on your company and how it views things. Keep in mind this is still part of the g/l account accounting flexfield. A key flexfield will contain its own value set, independent of other Oracle tables. Now you may create values in the value set for the segment that is the cost center that may correspond to, say, your HR Organization untis, but that will be only because you created them that way. If you add a new HR Unit, it will NOT show in the cost center value set until someone goes into that maintenance and adds the value there as well. Just have to understand that relationship.
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