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Cost Center Structure at a University.

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Hello all, At the university I am working for here is what there Cost Center naming convention appears: They use all 10 digits and this is how it is broken down--- XXX                                XX                    XX                      XXX C

Hello all,
At the university I am working for here is what there Cost Center naming convention appears:
They use all 10 digits and this is how it is broken down---
XXX                                XX                    XX                      XXX
College/Major Unit           Department     Division               User defined.
of Associate VP
I don't have a problem with trying to make a cost center name smart but in their Standard Hierarchy they only have ONE cost center group with 5,513 cost centers listed.  It's almost like they have created a second level Chart of Accounts within the Cost Center structure because of the last 3 digits are "user defined".
This seems like an inefficient design.  can someone shed some light on how other Public Acocunting organizations have set up their Standard Cost Center Hierarchy?
Under Cost Center groups they have created 1,316 groups. 
I really think they have tried to take the Cost Center structure to a level that is way too low.  They actually have Cost Centers whose lase three characters are abbreviations of the name of the person managing the spending in that cost sencter.
Edited by: Daniel Goodhart1 on Mar 3, 2010 10:42 AM

The replay answer
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Hello,
There is no point in going with only one cost center group. It is meaning less.
However, you can suggest to create a structure with second and third one XX XX as two nodes. If not possible at least either second one XX or third one XX should be made as a cost center group. This will not only helps them in proper reporting, but also, the consultant in removing the redundancy of the configuration.
Regards,
Ravi

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