About cost centers
A cost center is an entity used to track cost information within an organization. Many companies use cost centers to group expenses by department (for example, by Engineering or Sales).
Administrators can also set up split cost centers, so that a department can allocate its costs to other departments. You can split costs equally, or specify a percentage for each department involved. For example, a project management department might split its costs equally between an engineering department and a sales department. The project management department is the source cost center, and the engineering and sales departments are the target cost centers. One hundred dollars in costs for the project management department is allocated as $50 to the engineering department and $50 to the sales department.
In Remedy Asset Management, you can have only one level of split cost centers. For example, if you split a source cost center called C1 into two target cost centers called C-1 and C-2, you cannot also split C-1 and C-2 into additional target cost centers.
The application administrator can associate a cost center with an employee, a CI or a contract. If Remedy Change Management is installed, the application administrator can associate a cost with a change request. If a cost center is associated with a CI, you can use the cost center to allocate portions of the CI's cost to different departments.