I do agree that Cost center would not typically be needed or even wanted on the material. We have implemented PM in 6 other facilities without this requirement but this is the first time in Mexico and they've requested to be able to track where all of their materials are assigned. I wouldn't think this is a best practice because like you mention we track on a work order the cost center to the equipment or functional location, and for just general material issues without a work order we typically do those to a cost center. So you would be able to report on material issues to Cost center. But they want to track where materials belong even if they don't issue them.
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