COGS created as Cost Element

Hi,
If COGS is created as cost element in CO-PA but in OKB9 no cost center is assigned & CE Category used is 1...does this means there will be double posting in CO-PA ???
Regards,
Varsha

When the Profitability Segment has not been assigned, the Cost center would be the default assignement.
So, when it is not Profit related, obviously Cost related. So there won't be any duplicate posting happnes.
Moreover, this is only for Automatic Account postings like, discounts, qty differences and price differences.
Thanks

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CO-PA: COGS accounts created as cost elements

hello,
I have a question regarding COGS accounts, being created as cost elements. This was not causing problems, because client was using real internal orders for profit analysis. In the next phase of project, during implementation of costing based CO-PA, now I have problem, because of this situation, because I can not delete created cost elements (only possible at the beginning of the new fiscal year) , and the system asks for cost object assignment during GI creation. I was considering OKB9 assignment, but I think this will cause double values in CO-PA. Maybe temporary solution, by using real internal orders till the end of the year, and then deleting existing cost elements for COGS accounts, could work?
Please, advise what to do to solve this situation.
Thanks in advance,
Dusko

Hope you are not using account based COPA
To avoid double values in COPA, you can do one of two things,
1) after the costs are transferred to the internal order, you can just keep them there without doing settlement, let the users know that there will be under absorption for the internal order.
2) If the users are not willing to have under absorption in the internal order, you can transfer the costs to a value feild in COPA which is not reflected in the report in KE30 (Remember that you may loose one value feild in COPA this way)
Both make no effect on KE30 report as data will be transfered to COPA at the time of billing
Br Naveen

Consumption accounts not created as cost elements - Implications

Hi
There are following GL accounts as an Expense GL accounts:
Cost of Raw Material Consumption
Cost of Finished Goods Manufactured
Cost of Finished Goods Sold
Change in Stock WIP.
I have not created them as cost elements since its asking me cost center when i do any PGI or issue to sub contract stock, etc.
So i wanted to know the implications on CO-PA if i do not create cost element. I believe that value will flow to CO-PA on the basis of material code.
Further my doubt is, if i do not create it as cost element, how it will impact my cost center reports and product costing.
Please help. I am confused very much.
Edited by: Meenu_ND on Aug 4, 2011 7:55 PM

Hi Meenu
cogs - can not be created as cost elements- GBB-VAX- COSTING BASED COPA- MTS
Can be created as cost element -GBB-VAY- COSTING BASED COPA- MTO
always as a cost element GBB-VAY- Accounting based copa
Thanks
ram

Which G/L accounts to be created as Cost Elements

Hi
I wanted to know which G/L accounts should be created as cost elements since there are some G/L accounts that are usually not created as cost elements. Wats the logic that one needs to keep in mind while creating cost centres?

Hi,
G/L accounts are of two types
1) Profit and loss account
2) Balance sheet account
There are two types of cost element
1) Primary Cost element
2) Secondary Cost element
In P&L statement, expenses and revenues are shown.
Similarly in cost center costs are depicted, maybe departmentwise or product wise, etc..
So for every P&L account primary cost element is created so that these costs flow to cost center or in other words it is reflected both in Financial accounting and in Controlling.For secondary cost element you dont require an existing G/L account.
In short secondary cost element are used for assessment and distribution
I hope your doubt is cleared
Asha

Check list for creating a cost element?

Hi,
Who can provide a check list for creating a cost element?
Thank you.
Kind regards,
Linda

Hi,
Cost Elements are broadly of two categories - Primary and Secondary cost elements.
In case of primary cost element a GL Account should have been created and in case of secondary cost no corresponding GL account should exist. Secondary Cost Elements are used only in Controlling Module. The transaction codes are:
KA01 - Create Primary Cost Element.
KA06 - Create Secondary Cost Element.
KA02 - Change Cost Element
KA03 - Display Cost Element
KA04 - Delete Cost Element
KA05 - Display Changes
Once transaction data is posted Cost Element cannot be deleted.
Another point in Cost Elements is defining the Cost Element category. Cost Element category determines which Cost Element category can be used for which Business Purpose. For example cost element category 1 is used for primary costs and 11 is used for revenues.
In the default account assignment tab, we can define a cost center / internal order and always the postings for that cost element will be posted to that cost object.
Thanks
Murali.

Can we create a cost element for a Balance Sheet account?

Hi folks,
Is it possible to create a cost element for a balance sheet account? If yes, what are the scenerios we would need it and how is it done?
thanks in advance

Hello
Please review the below information regarding cost elements category 90 : Financial Accounting Balance Sheet Accounts
Category 90 is automatically assigned when you create cost elements in CO whose   general ledger accounts in FI are asset reconciliation accounts
(special balance sheet accounts), not income statement accounts. You
cannot change this category in CO master data maintenance.
FI does not require CO account assignments to cost elements of
category 90. However, if you enter an account assignment, it is only
recorded statistically for real objects.
Category 90 allows you to check order or project budgets for fixed
asset procurement. To do so, enter the investment order or WBS element
in the corresponding field in the asset master. The Asset Management
component ensures that the order or element automatically appears in
the document when you access the asset procurement.
The R/3 System debits the order/WBS element statistically in the
Controlling component, which you can then monitor with availability
control.
You can treat cost elements of category 90 as activity-independent as
part of cost center planning.
Also see note 75980 for further information. From the note:
The use of cost element category 90 is only provided in the standard
system in the following two cases:
1. As of Release 3.0G, asset acquisitions and down payments which are
      assigned directly to a fixed asset or asset under construction can
      be assigned to an account on internal orders or WBS elements
      statistically. In this manner, for example, an availability check
      can be triggered on the order or the WBS element for asset posting.
2. As of Release 4.0, cost elements of category 90 can also be created
      for material stock accounts to display material make-to-order stocks
      on sales orders or customer projects.
Regards
Javier Reviriego

How to create new cost element catagory

Hi,
Can any one let me know How to create New cost element catagory other than standard cost element catagory.
Thanks & Regds,
Sany.....

Hi,
We are using one GL to post expences as well as revenue for the same. In copa primery cost elements are not allowed & if i set clem cat to revenue it wont allow me to book purchase in same GL.
Waiting for your reply.
Regards,
Sany.

Finding G/l account created as cost element.

Hi All,
Is there a t.code or a table which shows me if a certain g/l account has been created as cost element?
Thanks
Gandalf

Hi
thru KA23 u can see the list of Cost elements defined in ur system. This obviously will be equivalent to ur GL numbers. By comparing this with S_ALR_87012326 (list of GL accounts) you can identify the cost elements to be defined.
Let me know if a direct way is available
Thank You,

Cogs-is it cost element or not

hi
COGS should be taken as cost element or not, it takes- what is the costobject and shall i send to copa or not
sowmya
Moderator: Please, search SDN

Hi,
Make COGS as CE in MTO scenario only (GBB-VAY) for bringing to COPA.
If it GBB-VAX do not create it as CE
regards,
neeraja

COGS accounts as cost elements

Hi All,
Please help me with this.
1.We have set up COGS accounts. Should we set them as Cost Elements? If yes , then should we use cost element category "1- Primary Costs" or "12 Sales Deduction" ? Right now we dont have COPA , we are planning to implement in future . One more thing, if we don't set up them as Cost elements now and would like to set up as cost elements in future (After COPA goes live) - can we do that?
2. Regarding Revenue accounts , we don't have SD or COPA now (but will implement in future)- Should we set up revenue accounts as "11 - Revenues" in FS00. Please help me ,
Thank you,
Sri

Hi,
1. If your client specifies that he needs the data to be transfered to Controlling, then COGS has to be created as a cost element with category-1.
If your client does not want any data related to COGS in Controlling then no need to create it as a cost element.
If you are implementing COPA in your organisation in future, without creating COGS as cost element also we can get the data in COPA reports, basing on condition type.
Data flow from SD to COPA is through Condition types in Costing based Profitability analysis.
In KE4I we assign condition types to COPA value fields, Basing on that profitability document will get created.
To bring the COGS amount to COPA,
Assign VPRS condition type to relevant value field.
If your problem will get solved with this answer, kindly award me marks
Thanks,
Deepa

GL Accounts Not created as Cost Elements

Whether all the Expenses -GL Accounts are to be created as Primary Cost Elements?
What are all the exception of GL Accounts that won't be created as Primary Cost Elements apart from the Business Decision?
Thank you

this has been asked 100 times before. Please search the forum before posting.

How to created an cost element group structure from P&L FSV

Hi All,
My client has changed his financial statement version and I have to change the cost element group structure according to the new profit and lost structure of this new FSV.
Do you know any transaction to do this automatically?. For example the creation of the sets' structure can be done by FSE5, is there any similar for cost element group structure?.
Many thanks in advance!

Hi NIketa
Whats the detailed error message? Can you paste that here?
Also, check the following, which may resolve your issue
1. If you are settling to the Top most WBS, i.e. to the project itself, do not do that... Settle it to a lower level WBS, atleast one level lower than the project...
2. Check if the status of that WBS is REL (released) and
3. The flag for "acct asst elem." is checked in the WBS element
Regards
Ajay M

Costing COPA and cost element category '1' for Revenue and COGS

Hi,
In my SAP environment historically Revenue GL accounts were created as cost element with category '1' (costs) and are being posted against cost centres. I know it is not SAP best practice, but it has been working like that in here for years. We have not activated and used COPA so far.
I am currently analysing options of implementing costing based COPA. I wonder if the fact that Revenue and COGS accounts are created as cost element with category '1' should cause any issues with COPA.
I know that in a perfect world it should be '11' for revenues and '12' or no cost element for COGS, I just hope we can leave CE category '1'.
Thank you,
Karol

Hi Ajay,
Thank you for explanation. I feared it would cause issues. However, I checked with one company code that has active COPA.
It has two Revenue accounts: one set as '11' , which is used for most automatic SD postings and other one with '1' category which is 'Other revenues' - sometimes used for automatic postings (configured in VKOA for services) and often used for manual revenue postings.
What I noticed is that documents posted for this 'Other Revenues' were posted against cost centre but also profitability segment was populated. However, it was only populated with sales quantity, no Revenue value field was updated. It must have been configured so it does not show error in COPA but update is not complete in PA table. No COGS split value fields are updated as these postings refer to services.
What I also obseved is that all COGS accounts are set as '1' and are linked to cost centre. But this seems to not affect COPA and it creates COPA document with correct COGS split into cost component category value fields.
So I assume this is only issue for Revenue accounts with '1'. COGS can be left with '1' for time being.
Do you know which config for Revenue account with '1' might have stopped COPA from giving error while posting invoices in SD?
Thank you,
Karol

How can we derive COGS by cost element ??

Hi Friends,
We are implementing standard costing in 11.5.9 ..
We have an interesting requirement to COGS to be created by Cost element (material, Labour, and Overhead) instead of one amount...
Any thoughts??
Rgds,

did you get this ? I have similar requirement

Material COGS as cost element - Is it advisable?

Gurus,
I have set up my COGS accounts also as cost elements of type '11' to enable direct postings to COPA during billing document save (FYI, We post to COGS during billing and not during PGI.) I would like to know what is the downside in creating COGS accounts as cost elements in CO? I would appreciate a little explanation because my knowledge of SAP CO is pretty limited.
Thank you all.
-Murugan.

Hi
Is COGS with Cost element category 11??. It should be "1" and not 11 as 11 is a revenue cost element category.
S Jayaram

COGS created as Cost Element

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