Cost center
A cost center in SAP is an organizational unit (department, production line, work position…) where the costs are allocated.
- KS01: create cost center.
- KS02: modify cost center.
- KS03: display cost center (master data).
- KS13: display cost center (list).
Cost center group
Cost centers can be grouped for reporting purposes or facilitating the selection of cost centers when executing other SAP transactions.
- KSH1: create cost center group.
- KSH2: modify cost center group.
- KSH3: display cost center group.
SAP Standard Hierarchy
A “tree structure” can be defined in SAP for a controlling area. Standard hierarchy and cost center groups are related concepts: each node in the hierarchy is a group.
- OKEON: create/modify cost center hierarchy.
- OKENN: display cost center hierarchy.
Below it is an example of the standard hierarchy for the fictitious company “Under Controlling” defined in this post.

Reports
- KSB1: actual postings in cost centers.
- S_ALR_87013019: actual vs. budget (by cost center and cost element).
