What is an SAP cost center hierarchy?

Cost center hierarchy
Cost center hierarchy consists of groups of cost centers in a tree structure within a controlling area.
Cost centers can be grouped together to provide summary cost information. A cost center hierarchy consists of nodes and sub-nodes that cost centers are attached to.
A cost center hierarchy comprises all cost centers for a given period and therefore, represents the entire enterprise. This hierarchy is known as the standard hierarchy.
Cost center hierarchies are typically defined before creating cost centers. Maintenance is handled via transaction OKENN (see Figure 4.1).
The menu path is as follows: ACCOUNTING • CONTROLLING • COST CENTER ACCOUNTING • MASTER DATA • STANDARD HIERARCHY • CHANGE (OKEON) / DISPLAY (OKENN).

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