Quick Reasons Why BPC Design For Cost Center Must!

To be fast and clear, in a cost center planning application where we accept the basic design of SAP ECC in its relationship of Cost Centers to Profit Centers, it is MORE appropriate that Profit Center be a Dimension and here is why.

1.  Cost Center data for Profit Center can be changed in the master record and could be changed Annually for example.

So if profit center is a dimension then your history of where a cost center was relative to a profit center would be maintained.

In the ParentHX hierarchy, however, you can depict profit centers as Parents of cost centers.  Just remember you will need to change that hierarchy to the current master data in ECC SAP from time to time.

Now let's deal with Company Code.   In a cost center planning application cost centers would roll up to company codes so long as NO CROSS COMPANY CODE CONTROLLING is allowed.   Let's accept that for now.   How would Profit Centers play in this Cost Center Entity dimension if company codes were part of the hierarchy?  Answer - NOT VERY WELL except as a property of Cost Centers.  Again too since profit center to cost center data can change in the cost center master record, you still need profit center as a dimension!  If you want roll-ups to company code in the cost center entity the Profit Center must be a property and cannot be part of the primary hierarchy.  It could be a stand alone alternative hierarchy, but the limitation is that a profit center can belong or be associated with MANY COMPANY CODES and this is common.  

What does this all mean?   If cost center is your entity and you intend to push data to an application where company code is the entity then you need a company code dimension as a user defined dimension.  You could use the Interco dimension for this push and adjust the logic accordingly.   There may be other options, but in short, there is no doubt that Profit Center is a slowly changing dimension in a cost center planning application and it is not possible to both roll up to profit centers and company codes in the same hierarchy within a cost center dimension.

Short answer

Cost Center -->  Entity  -->  To give currency flexibility and to Roll up to company code if no cross company code controlling allowed

Profit Center -->  Dimension

Company Code -->  Best as dimension if push required (easiest) and best if it is an entity dimension but then planning currency for cost centers might come into play!  More on that design later too!!!