Creating Cost Elements for OBYC Accounts

Hi
We are implementing COPA and we have manufacturing scenario (MTS) also. Now i have created cost elements (with category as 1). Now its giving me error for CO object when i post any SD entry (at the time of PGI and releasing billing document to accounting) or MM entry (MIGO / MIRO). So please help me cost elements needs to be created for following accounts:
Price difference A/c
Rounding off A/c
Small difference A/c
If i do not create it as cost element, will it effect my COPA / Product costing / Cost center planning.
Please help

We are implementing COPA and we have manufacturing scenario (MTS) also. Now i have created cost elements (with category as 1). Now its giving me error for CO object when i post any SD entry (at the time of PGI and releasing billing document to accounting) or MM entry (MIGO / MIRO). So please help me cost elements needs to be created for following accounts:
Price difference A/c
Rounding off A/c
Small difference A/c
If i do not create it as cost element, will it effect my COPA / Product costing / Cost center planning.
When your postings hit CO (COPA) from Billing the system is expecting the Real CO Object (e.g. Cost Centre, Internal Order, WBS, Profitabilit Segment etc) to be Profitability Segment.
The RWIN interface (program group that posts to FICO - includes COPA) is checking and finding that there are Cost Elements created for the 'account determination' (accounts determined in Billing) that have a Cost Element category of 1 and I assume that you have determined these postings should go to COPA. Thus the error.
For CE Cat 1 (Primary costs/cost-reducing revenues) the system expects a Cost Object that is not a Profitability Segment.
The solution is to not create them or to use CE Cat 11 or 12 which allows Prof Segment.
Take into account the fact that if you are using the Reconciliation Ledger then CE Cat 11 or 12 should be used (i.e. adding the REAL (not statistical) postings in COPA + Cost Centre Accounting + WBS + Internal Orders = FI P&L).
Please test the use of CE Cat 11 or 12. The problem is that if you have already posted to the old CE's you will need to create new ones as you can't change CE cat once posted to.
The Business Analyst Question would be: Where does the Business want to see the REAL postings of Price Difference, Rounding Off and Small Difference? In COPA (then see above explanation - I would assume the Business want it here) or in Cost Centres (adjust your config and use CE cat 1).
Hope this helps.

Similar Messages

When not to create cost elements for P&L accounts? Implications?

I noticed some P&L gl accounts are not created as cost elements eg. R&D expense, COGS (posted during SD delivery), sales (posted during SD billing), freight charges, production variance (posted during prod.order settlement), etc.. I'm thinking if cost elements are not created, FI and CO will not reconcile.
Example of our SD delivery posting :
Debit COGS (sales order assignment)
Credit Stock
From above posting, there is amount posted to COGS gl account but no CO assignment except for sales order. Is there supposed to be a follow-up to this posting to reconcile FI with CO ? Or is our setup wrong?
Fyi we do not use CO-PA.
Thanks in advance.
Edited by: Pixel8 ation on Aug 3, 2010 5:16 PM

Hi,
Sorry, I probably confused things by mentioning Revenue. Your settings are correct, with Revenue defined as a revenue element (11) rather than a cost element (1).
With respect to WIP (P&L), I would create it as a cost element, since it represents the absorption of cost centre costs and materials into the production of goods, even though the goods are not yet complete. When the goods are completed they will be credited in CO-OM and debited to stock using a similar entry. The impact of these credits (to WIP or to Stock) is to move costs out of CO-OM into the goods produced (CoGS). In CO-OM, the net result of Costs less credits to WIP/Stock, indicates the efficiency of your cost centres or the accuracy of your standards.
I would also create the manufacturing variance accounts as Cost Elements and settle them back to your production costs centres (or possibly CO-PA if you used it), since they are also a reflection of the efficiency of your cost centres - i.e. if a Cost Centre manager is not achieving the standards, (s)he should be accountable for the variance, and if you are concerned about reconciling CO-OM and the costs in P&L, you won't reconcile if the variances aren't posted back to CO.
Regards,
Marc

Two Cost Element for the same GL

Hi,
We have 2 Company Codes - 1000 & 2000. We are using same CoA in both the Company Codes. We have a GL, say 12345678 for posting short/excess amount. So during MIRO, the accounting entry would be:
GR/IR a/c dr.          10,000
GL 12345678                  2
                   Vendor            10,002
GL 12345678 would be dr or Cr would depend on short/excess amount.
We have created Cost Element for this GL 12345678. If I post the MIRO without attaching a Cost Center to this Cost Element system thows an error to attach the Cost Center. I have separate Cost Center for Company Codes 1000 & 2000 however I can only put one Cost Center in this Cost Element.
Can anyone advice how can I post the above mentioned entry with different Cost Center. This line item (GL 12345678) is generated automatically and the Cost Center field is greyed out hence I don't have option to enter the Cost Center during MIRO. I checked the FSG of this GL, Cost Center field is 'Optional' over there.
Thanks,
Sandy

Solution Option* -You can assign Differant Cost Centers to Company Code 1000 and Company Code 2000 in OKB9 Transaction Code.Follow the below process....
--- Go to OKB9
--- Select New Entries button
--- Give the Company Code 1000 in first row and 2000 in 2nd row
--- Enter the Cost element 12345678 for company code 1000 and 2000
--- Enter the relevent cost centers for company code 1000 and 2000
--- Select Save
Thanks
Fit 4 Nothing

Cost element-balance sheet account

hi,
i need to create cost element for balance sheet account ( other than raw material account)
Thanks
raghavan

Dear Raghvan,
Cost elements are not created for balance sheet accounts. It is created from only P&L accounts.
Even if you try to create a cost element for BS account, system prompts you as 'GL is a balance sheet account'.
Regards,
Ajay

Cost elements for TAX expenses

Dear all,
Is it necessory to create cost elements for following GL's ??
We are not going to implement PCA here.We are going to implement Product Costing.
50000031     EXCISE DUTY - PURHASE
50000032     SALES TAX C.S.T-PUR
50000033     SALES TAX M.S.T-PUR
50000034     EXCISE REBATE CENVAT
50000035     SALES TAX (PUR)
50000044     EXCISE REBATE CONSUM
50100000     CLOSING STOCK OF SEM
50100001     CLOSING STOCK OF FIN
50100002     OPENING STOCK - SEMI
50100003     OPENING STOCK - FINI
50100058     ROUNDING OFF
50100138     Cost of Goods Sold
50200011     PREVIOUS YEAR EXPENS
50200012     PREVIOUS YEAR TAXES
50200013     Doubtful Advances Provisions
50200014     Doubtful Debts Provisions
50200015     Realized Loss on Foregn exchange
50200016     Unrealized Loss on Foregn exchange
Thanks & regards,
Ranjeet

Ranjeet
Check your Previous threads answer
Anup

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

G/L accounts or cost elements for maintenance order

Hi,
Can anybody explain the following.
1- What are the applications of inventory and consumption cost element / GL accounts, while posting goods issuance, good receipt and maintain service entry sheet with reference of maintenance orders' reservations and purchase requisitions? I want to know which cost element or GL account is debit and credit during every posting. And What are their impacts on maintenance order?
2- What is the purpose of "source" (cost element group) and "settlement cost element assignment" in allocation structure when we want settle maintenance order on cost center?
3- On which accounting term, the maintenance order should be settled, cost center or GL account? what is the best practices?
Regards,

Goods Issue & Goods Receipt:
In OBYC, G/L account for Inventory posting & Offset account for that Inventory posting will be maintained. Inventory posting will be BSX & Offset will be GBB.
In Material Master, valuation class will be assigned. Based on this valuation class, this entry will be taken.
Service Entry Sheet:
Problem with Service Entry Sheet creation through ML81N
service entry sheet

Statistical Cost Element for B/S accounts related to inventory - HELP

Dear Gurus,
I need to create a CE type 90 for my inventory accounts. In SAP help it says
"System Response
Balance sheet accounts cannot be created as cost elements in cost accounting, except for:
Asset reconciliation accounts
Material stock accounts for valuated sales order stock for sales orders or projects."
For assets tcode OAK7 can be used after maintaining relevant accounts in AA -> Integration w/GL -> Assign G/L accounts.
How do I do the same for material stock accounts (which are B/S as well)?
Thank you in advance!
Ciao!
Max

Hi,
In SAP the cost element category is pre set to 90 for all Balance Sheet Accounts.
Hence you cannot create cost element with category 90 for any Balance Sheet account.
Award points if found useful.
Regards,
Satish Pasumarthi

Error while Creating cost element under category 90

Dear Experts,
I have some Balance Sheet related G/L account, which I have created as cost element through transaction KA01, system gives an info message saying its an BS related account, if I ignore that message and proceed further it creates a Cost element with category (system automatically picks the category and the field gets into gray mode) 90.
We have created one more BS G/L account today and trying to create the cost element for the new G/L account, system is producing an error message:
G/L account 3200220 is a balance sheet account
Message no. KS036
Field status group     R005     Material accounts is maintained
Can some one guide me to rectify this error?
Thanks in advance,
Regards,
Praveen

Hi,
The use of cost element category 90 is only provided
in the following two cases (note Note 75980):
1. 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.
2. 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.
If you G/L account does NOT correspond to the standard cases 1) or 2),
you can (on your own responsibility)
both deactivate the account assignment
check in the CO interface (message KI098) and when you create cost
elements (message KS036). Both checks are deactivated by maintaining
Transaction OBA5. Deactivate message KI098. Message KS036 cannot be
deactivated directly with Transaction OBA5 - rather, it is deactivated
indirectly when you deactivate message KI098.
The message must be DE-ACTIVATED. Please do not set it to any other
type. Please proceed as follows:
Please call OBA5 in the production system - if not set to changeable
please do this in Your development system.
In OBA5 choose KI and in the detail screen add 098.
Then set the type of warning to "-".
Best regards,
MLM

How to create cost element in controlling

how to create cost element in controlling for Direct meterail.
i have to create for each materail or on rm consumption is enough
please give me replay
thanks

Hi Nagaraju,
First you create the required account as cost element through FS00 and select your gl account and edit cost element and give 1 in cost element category.
Afterwards in OKB9 You create the cost element whether it is required for Bus Area mandatory, profit centre mandatory and Valuation area is mandatory. Based on your selection you have to assign 1, 2 or 3. Ex. You have selected for consumption account profit centre is mandatory. You give 3. and you have to assign the cost centre against profit centre. Then automatically your consumption will post to the cost centre.
BSR

Mistake in creating cost elements

Dear Guru's,
By mistake, Sale revenue GL accounts have been created as cost elements under "01" category instead of 11 category.
Due to this mistake, Sales values are not flowing to COPA,
Please help me in this regard, how to correct it.
Regards
Anuj

Hello,
If you have dependent data (actual and/or planning data) on the cost
element for the fiscal year there is no way to change the category type
until the next fiscal year. This is to prevent inconsistency in the data
for a given fiscal year.
What I can advise is to change the validity period of the cost element
as of the next fiscal year in KA02 to change the master data in
relation to the cost element type. This should be no problem.
In case you need to execute this change for periods where you already ha
postings on the cost element, all the previous postings to this cost ele
within the fiscal year need to be reversed or deleted. In most cases thi
not easily possible - so it mainly depends on how many postings you have
made to this cost element. In case you can remove the previous CO-docume
use note 175522 by deleting the postings with report ZKACOR21.
Delete all the actual postings for the particular cost element\fiscal
year combination so that there are no dependant entries in the CO tables
There are entries in the following tables COEP, COSP, COSS and
COKA.
Notes 37093, & 38955 that explain how to delete cost elements
where there is dependent data.
"the cost element can only be deleted, if you delete first the entries
of following tables: COEP (CO object: period-related line items),
and with the information document number and line item of COEP you can
delete the entries in table COBK (CO Object: Document header). The name
of the summarized table is COSP (CO Object: Cost Totals - External Post
ings). The last table is the most important one it is the control table.
The Transaction KA04 will select this table before deleting a cost elem
ent. Its name is COKA. If you delete all entries it should be possible
to delete your cost element."
Even if the COEP table line items are 'zeroed out, they are still
considered as line items. Please review your COEP table. If there
is a posting to the cost element, you can reverse the posting so that
that the cost element has a zero balance, ('zeroed out'). Then please
review attached note 175522 and try running report RKACOR21 described
in the note. Please try this in your test system first.
Please try this way to delete table COKA/COSP entries:
-run report:RKACOR20(refer to note 45122) to delete the CO documents
for the GL doc and its reversal document
-run report:RKPLNC27 (refer to note 549760) to delete zero records in
table COSP (with parameters:object number,fiscal year,version)
-Then run report:RKPLNC25 to delete dependency record in table COKA.
br, Guido

Error when createing cost element

Dear Friends ,
Following error appering when createing cost element , please suggest and explain the process in details ,
Create the G/L account 94100040 first
Message no. KS034
Diagnosis
You chose the function "Create primary cost element". Primary cost elements/revenue elements must have an equivalent in FI, meaning the account must already exist as a G/L account in FI. Account 94100040 was not created in FI, so you cannot create it as a primary cost element.
Procedure
Check whether you need to create cost element 94100040 as a primary cost element and for what purpose it is to be used for.
If the cost element is to be assigned to accounts in FI, create a G/L account in an FI company code.
Manually create G/L account
If it is not to be assigned to FI accounts (additional CO costs), it suffices to create the G/L account as a chart of accounts item.
Create G/L account in chart of accounts
You can create the cost element as a secondary cost element in CO. This does not require an equivalent account in FI.
Regards
Raghu

Hi,
use T.code FS00 and enter G/L account number and co.code and enter required details and in application tollbar click edit cost element and enter required details.1st consult FICO consultant for above and use of G/L account group and other details for creating G/L.You can cretae Cost Element in t.code: KA01 also.
For more check the links to Create Primary and Secondary Cost Elements
http://www.copacustomhelp.state.pa.us/infopak/nav/finance/controlling/file1402/index.htm
http://www.copacustomhelp.state.pa.us/infopak/nav/finance/controlling/file2595/index.htm
http://www.sap-basis-abap.com/sapco004.htm
Regards,
Biju K

How to create cost element in mass

Hi All
I want to create cost element in mass. i created to new GLs . and now i want to create there cost elements in more than 60 company codes . is there any way to create it in mass . please suggest with t.code
Thanks in Advance
Nikhil

Yes you can create cost elements in a batch session automatically.
Please use tcode OKB2 for default settings.
Define batch input session - OKb3
Execute batch session : SM35
Regards

Define a settlement cost element for receiver type FXA

Hi,
While settling the AUC internal order,i am gettingg the below error.Kindly advice me
Define a settlement cost element for receiver type FXA
Message no. KD506
Diagnosis
In allocation structure A1 (controlling area AFCO), you did not define which cost element should be used when settling costs/revenues of the sender. Nor did you define receiver type FXA.
Procedure
Assign a different allocation structure to the settlement sender (-> Master data -> Settlement rule -> Goto -> Settlement parameters), or maintain allocation structure A1.
Thanks
Supriya

Hi Supriya,
Go to SPRO-> Controlling > Internal orders>Actual postings>Settlement> Maintain Allocation structures & choose A1 and go to assignment, select the relevant category like raw material / consumption and then go to source, check the range of cost elements first then click the settlement cos t element and under that choose FXA and define the settlement cost element which must be created under 22 category.
After maintainig the above, you will not get the error anymore.
Thanks & Regards
Anuj Agarwal

Define a settlement cost element for receiver type CTR

Hi, i work for real estate company and we just implemented SAP. were on our process of closing our books and we are tied by error during PS settlement. House repair, which is an income statement account and cost element as well, are monitored in Project Systems with settlement rule set to GL. Postings will initially be posted as Project Cost WBS and will be settled to house repair GL. however, someone advised us that only balance sheet accounts should be settled to GL. Cost and expenses should be settled to Cost Center and so we changed the configuration and business process to posting costs directly to GL house repair and settlemet rule is to be settled to CTR. After the change in configurations and settlement rule, we still cannot process settlement due to this error "Define a settlement cost element for receiver type CTR". Please help, i may have missed a step in system configurations. Thanks thanks

Define a settlement cost element for receiver type CTR
Check in OKO6 whether you have defined the required Settlement Cost Element to the allocation structure.
thanks
G. Lakshmipathi

Creating Cost Elements for OBYC Accounts

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