Cost-reducing revenues

Hi,
1 Can have example of Cost-reducing revenues cost element?
2 what is the difference between cost reducing revenue element and revenue element? i know cost reducing revenue is category 1 whereas revenue is category 11 but i do not know what is the difference between them.
3 as category 1 is both primary cost and cost reducing revenue, so how can i know the posting is primary cost or cost reducing revenue?
thanks

Primary cost = Cost Element (Category 01) =It is a Business Cost (Purchase of Raw Materials,Salraies paid to employees)
Revenue element( Category 11) = It is a Business Revenue ( Sale of Finished Goods,Trading Goods etc.,)
Other Income is also Revenue element.(Category 11) = Rent received ( which is not reducing business cost)
Where as Cost reducing revenues (Category = 01) is the revenue which reduces the business cost (Discount received on Purchases, Discount received on early payment made to Vendors etc.,)
Srinivas

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