Prior to creating any cost centers in your controlling area, you must first complete the standard hierarchy as it is the central cost center hierarchy and acts as the one repository for all the cost centers.

KSH2 - Standard Hierarchy
Enter your Company Code which is the highest node
Click Lower Level (insert cost center group)
Then click Insert Cost Center

A sample hierarchy :-

0001
      Cost Center Group 1
                Cost Center 1
      Cost Center Group 2
                Cost Center 2

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SAP Financial and Controlling Interview Questions, Certification and Configuration, Books

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