In simple terms, a work center is a place where work is carried out. A work center is generally either an individual machine or a group of machines, however, a person or a group of people can also constitute a work center. An operation is carried out there.

If you want to carry out a standard values calculation, you must specify the work center where the operation is going to be processed. You specify the work center for which the standard values are to be calculated in the operation in the routing. Technical data describing the work center from the point of view of the standard values calculation must be assigned to this work center. Machine data and rounding and additional value keys are examples of technical data. In the technical data you also enter the processes that are assigned to the work center.

In SAP, a work center can also be defined as:

• A work center is a spatial area within a business’s work system, where an activity should be carried out. Examples of work centers include a group of people, a single machine or a production area. The data defined in the work center is used for following business functions: Costing, Scheduling, Capacity Planning.
• Operations are carried out at a work center. In the SAP system work centers are business objects that can represent the following real work centers, for example: Machines, machine groups, Production lines, Assembly work centers, Employees, groups of employees.
  
• A work center is an organizational unit that represents a suitably-equipped zone where assigned operations can be performed
• A work center is a suitably equipped physical location in the warehouse, in which VAS are performed.

The work centers are distinguished by work center type (for example, production work center, maintenance work center). The work center type determines which data can be maintained in the master record for the work center.

Work centers are created in transactions CR01/CR02/CR03.

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