Cost Center , Cost element , GL Accounts , Cost sheet , Account Assignment

Question

Dear Experts,
Please explain what are Cost Center , Cost element , GL Accounts , Cost sheet , cost component and structure, Account Assignment and  how they are interlinked with each other with transactions.
Thanks,
Ram

Answer 1

Dear,
Cost element : A cost element classifies the organization's valuated consumption of production factors within a controlling area. A cost element corresponds to a cost-relevant item in the chart of accounts.
Primary cost element: A cost element whose costs originate outside of CO and accrual costs that are used only for controlling purposes
Secondary cost element: A cost element that is used to allocate costs for internal activities. Secondary cost elements do not correspond to any G/L account in Financial Accounting. They are used only in Controlling and consequently cannot be defined in FI as an account.
Cost Center: An organizational unit within a controlling area that represents a defined location of cost incurrence.
GL Accounts : GL Accounts is master data preparation which is assign to chart of accounts.
Costin Sheet : The costing sheet integrates all elements of overhead costing. In costing sheet calculation base, cost element & Overhead rate & credit are define.
cost component and structure :
Cost component - Makes the costs of a material, an activity type, or a process transparent & Groups the costs of a material according to the requirements for material valuation and profitability analysis
cost component structure : It is use for
Activity prices for an activity type
Cost of a process
Planned cost of a product
Material costs passed on to material valuation as the standard price or inventory price
Cost of goods manufactured passed on to Profitability Analysis
Account Assignment : It's use for direct posting. In this we have to assign GL which is required to post directly.
GOPAN