A work center is an organizational unit where a workstep is carried out, producing an output. The work center defines where and by whom an operation is to be carried out. A cost center is assigned to each work center in the work center master record. The work center has a particular available capacity. The activities performed at or by the work center are valuated by charge rates, which are determined by cost centers and activity types. Work centers can be:
An organizational entity that represents a suitably equipped, physical location where work can be performed.
Place at which inspections are conducted. In the R/3 System, work centers are entered in the inspection operations. Several inspection characteristics can be inspected for each work center or inspection operation.
Capacity, activity and settlement data is assigned to the work center.
A work center is a particular place which has been set up specifically so that employees can perform their duties within the corporate work system using working materials.
A work center can represent anything as general as a geographic location, for example the New York branch office. Or work centers can be very precisely defined. For example, a work center could represent a particular workstation with specific tools and equipment on a specific floor of a specific building.