Cost Center Qualifier Mandatory ???

Hi All,

a simple question, assuming that you are implementing the base financial modules alone ( AP, AR, GL, FA and CM), do you think it is mandatory to have a cost center Qualifier in the Accounting Flexfield ?Assume that client does not have a concept of cost centers / departments hence there is no cost center segment in the Chart of Accounts Structure ...lets say ...Company - Accounts - Region - Product ( A 4 segment Chart of Accounts Structure )

What would be your response ....?

You would be surprised to hear i say that COST CENTER FLEXFIELD QUALIFIER is mandatory if you need to use Fixed Asset Module.(Not only Fixed Asset Module, also Projects module requires a cost center segment or a segment with Cost Center flexfieldQualifier)I am not making this up, it is stated in the General Ledger Implementation Guide, also in various oracle support documentation .... The logic behind the same is something i cannot resolve myself ...

I tried scanning through the Assets User Guide to find any meaningful information on this front, and below are the reasons:1) Oracle Assets charges depreciation expense to the asset using the expense account and runs Responsibility Reports using the cost center information.2) Some companies do not track assets on a cost center level. If you do not, then set up a default cost center for your incoming assets. To define the default cost center, create a code combination in each depreciation expense account for thedefault cost center.

i.e. the Depreciation program and the Depreciation expense account concept or design works fine in the assets module only when you have a cost center Segment / or a segment marked with Cost center Flexfield Qualifier. Also there are good number of standard reports that can be executed only when you have a segment that is marked with Cost Center Qualifier...

(I am not sure, whether one can re-design the way asset module picks up/generates account code combinations by customizing the Account Generator Workflow in the Asset Module, if that can be done ... then we may not need cost center segment ..)

(Thank god, i have never been on a project that did not have a cost center/department segment ..........., till date ! )

Regards,Ivruksha