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What is the meaning of master cost center and cost distribution?

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What is the meaning of master cost center and cost distribution?
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IF you want to relate organizational unit or position with in a cost center from CO you would have to use application known as organizational management. The Organizational Management application component lets you relate an organizational unit or position with a cost center from CO. Cost center data is approved end to end with the organizational structure to all fundamental structural components or locations that are not allocated a cost center.

IF you want to store the data of cost center for a structural component or location is hereditary by the person you would have to use the personnel administration component that is combined with the organizational component. Sometimes the person inhabits more than one place and is consequently salaried by more than one cost center, for this you need to have the cost distribution with in the payroll accounting. Till now it uses info type 0027 to define the cost distribution. You can sort out this issue by transferring the cost centers that are being allocated to person straightly from organizational management.

Cost centers connected with an organizational component or place by means of association A0XY comprise the essential info in the relationship percentage data. The percentage kept is recycled to control the cost portion for these cost centers.No relationship percentage data is deposited for the master cost center since costs that are not dispersed to the supplementary related cost centers are moved to the master cost center. This guarantees that 100% of costs are dispersed. If, for example, each of three cost centers takes a third (1/3) of the costs, resulting in 3 x 33,33%, this does not add up to 100%.


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