Difference between type of Secondary Cost Element Category?

Hi,
I checked the system, and during the secondary cost element (CE) creation, I can select some of the CE category as follows:
21 Internal settlement
31 Order/project results analysis
41 Overheads
42 Assessment
43 Internal activity allocation
50 Project-related incoming orders: Sales
51 Project-related incoming orders: Other
52 Project-related incoming orders: Costs
61 Earned value
My question, what kind of report that I can read entries with these kind of CE?
Reason: I want to check what has been posted to these secondary CE.
Or
Could anyone explain the use of above-mentioned CE category in brief?
Thanks.

Cost element that is used to allocate costs for internal activities.
Most often used categories are
21 Internal settlement
(When ever an order is settled e.g internal order settling to cost center through this type of cost elements)
31 Order/project results analysis
(WIP in production orders are calculated and posted using this category)
41 Overheads
(Used in costing sheet to do an overhead allocation)
42 Assessment
(whenever cost is allocated between cost centers through allocation method - Assessment)
43 Internal activity allocation
(found in production orders when a routing activity is confimed the charge goes to the production order through this cost element)

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Difference between GL Account and Cost Element associated

Hi,
In the system ECC6.0, due to modification it happens that there are some difference in the description between some GL account and their associated cost element.
Is there any way to have an automatic update in order to avoid this kind of problem.
Regards,
MAtthieu

Hi Matthieu,
Take a look at the OSS note 634887 and upload in your system the programs mentioned there.
With the program ZKA_KSTAR_TEXTS_INS_AND_UPD you are aible to update the cost element texts copying the corresponding G/L description
Kind regards,
Dan

Secondary cost element in KB11N

Hello.
I'm not allowed to use a secondary cost element in a reposting.
What do I have to modify?
Thank You

Hello,
You cannot use secondary cost element. You need to use primary only.
Please go through the following:
DISTRIBUTION =========== Distribution was created for transfer primary costs from a sender cost center to receiving controlling objects. During distribution, only cost centers or business process can be used as sender. A distribution receiver can be a cost center, WBS element, internal order, cost object, or a business process. You can restrict the number of receiver categories in customizing. Primary Postings (such as, energy costs) are collected on a cost center, and allocated at the end of the period by means of the user-defined key. You can only distribute primary costs. During this process, the original cost element remains the same. Line items are posted for the sender as well as for the receiver, enabling the allocation to be recorded exactly. You can reverse distributions as often as required. You use the Cycle-Segment method to define sender-receiver relationships. PERIODIC REPOSTING ================= Differences between periodic reposting and distribution are due to information content and performance. For periodic reposting, no separate credit record is written on the sender for the cost element in the summary report. Instead, the totals record for the cost element is reduced on the debit side, which means that the original debit amount can no longer be checked there (u201Cunclean creditu201D). However, during distribution, the system writes a totals record for the credit (u201Cclean creditu201D). The information on the receiver is the same for periodic reposting and distribution (u201Cclean debitu201D). Compared with periodic reposting, during distribution, the system also updates the partner in the totals record for the sender. This means that the partner can be displayed in the information system on the totals record level. As fewer totals records are written during periodic reposting, performance is better than during distribution. ASSESSMENT =========== Assessment was created to transfer primary and secondary costs from a sender cost center to receiving controlling objects. During assessment, cost center or business processes can be used as senders. The receivers for an assessment can be a cost center, WBS element, internal order, cost object, or a business process. You can restrict the number of receiver categories in customizing. Primary and secondary posting are allocated at the end of the period by the user-defined key. During assessment, the original cost elements are summarized into assessment cost elements (secondary cost element category = 42). As the system writes fewer total records, the assessment has a better performance than periodic reposting and distribution. The system does not display the original cost elements in the receivers. Therefore, assessment is useful if the cost drilldown for the receiver is not important. Similar to distribution, the partner is updated in the totals record during distribution You can reverse assessments as often as required. You use the Cycle-Segment method to define sender-receiver relationships. Regards, Ravi

Condition Type with cost element category 1

Dear Sap expert,
I have costing based copa and I am running make to stock scenario.
SD team added new condition type in their pricing.
This condition type is mapped to FI GL account which is a cost account (cost element category 1) while the other condition type in SD pricing is cost element category 11 or 12.
I mapping this cost account to a cost center in OKB9.
But when SD run billing, there is an error message :
"Prof.segment for prim.cost elements not advisable for costing-based CO-PA" .
I don't mapped this new condition type to copa value field.
But Why does this error come?
Please help me.
Regards

Hi Anu
This is standard behaviour... Once you have COPA active, the Prof Segment gets derived when you create Sales Order...
So, any posting that happens from Billing, gets assigned to this Prof Segment...
The design is such that you cant post to COPA using Catg 1 cost element....
So, if you are posting to this GL account from SD Billing, you need to have it as Catg 11 or 12.... If you dont want to post it to COPA, then do not post to this GL from SD billing.. Post it from FI side...
Br, Ajay M

Diff between cost element category 1 and 11

What will be the major difference if we create cost element under category 1 and under category 11.
I am facing one issue:
Sales commission expenses account - needs to be triggered while releasing sales invoice.
System is behaving differently if we create cost element category as 1 and 11.

Hi,
Cost element category 1 is used for primary cost and 11 is used for revenue cost element.
Sales commission is which have directly related to sales invoice i.e deductions then use cost element category 12 .
If your using category 1 then it should assign to cost center or internal order, if using category 11 or 12 then it should assign to Profit center.
Regards,
Sreekanth

Secondary Cost Element Values doesn't display in Profit Center Report

Hi everyone,
I'm having a problem with our Profit Center plan/actual/variance reports wherein it doesn't display the postings I made to the Secondary cost element when I executed an assessment cycle (KSU5). I already set in the configuration that all postings to be done in the cost centers, should have a parallel posting to the profit center assigned to it. I can see the postings in my cost center reports, but not in my profit center report. Could I have missed out on any procedure to enable the secondary cost element parallel posting in my profit centers? Any help would be appreciated. Thanks!

it might be the configuration of the library or some parameter in the report (record type should be 0 and 2 for actual values, where 2 stands for distributed values and 1 and 3 for planned values)
but it also might be that the reconciliation is done between different CC and same PC
- check your CC organisation asignment
- if sender cost center and receiver cost center have tha same PC it is probably the reason
- I had that problem my self and didn't solve it
cheers
matej

Cost Element Category and Commitment Item Cat. for PS Cash Mgmt

Dear All,
We are activating PS Cash Mgmt.
I want to know the difference between:
1. Maintaining the Cost Element Category as 1 and 11. Is it necessary to maintain 11 (Revenues) or maintaining 1 (Primary costs/cost-reducing revenues) will have same result.
2. In Comm. Item Financial Tran. maintained is 30. But for Commitment Item Cat. as 3 (Expenditures) or 2 (Revenues) only to be assigned for revenue.
Our Client is asking to maintain everything as 3 (Expenditures) to all the commitment items. What will be the effect on PS Cash Management if I use Cost Element Category as 1 & Commitment Item Cat. as 3 ?
Regards
Shubham

Hi,
Cost element category as 1 and commint Item caterory 3 holds good for all expenses, so you can use this, with this when you process Invoice In MIRO a Project cash management document will get generated and this will update the report against the payments in CJIA as well in S_ALR_87013574 reports etc.
Combination for creating commitment items is
Cost element category 1 --> Commitment item category as 3 and Financial Transaction as 30
Cost element category 11--> Commitme nt Item category as 2 and Financial Trns as 30.
Note : what ever the G/L accounts created wrt Chart of accounts, whether it is Expenses or Inventory or Revenues, you have to assign commitment item in the G/L Master in Create/bank/interest tab in field commitment item. If it is not assigned in all modules you will get error as commitment item not assigned.
Thanks
Regards
kishore

Posting for secondary cost element

Hi All,
After running KSU5 (cost centre settlement, we have small balance in secondary balance. Could you please advise how we can post entries between secondary cost element.
Regards
Deepak

KSU5 is used for cost center assessments (settlements are a type of allocation for internal order/WBS elements/networks/etc). Once you define the rules for the allocation, SAP will follow those rules and post the appropriate entries. You cannot post manually/directly to secondary cost elements. SAP cannot get "out of balance" during an allocation. When you say "small blance in secondary balance", I am not sure what you mean. Are you saying there is a financial balance remaining in the Sender cost center? More info is need to properly address the issue.

Number convention for Secondary cost element

Hi,
Anyone can guide me how to check the number convention for secondary cost element being set up in SAP?
thank you

Hi,
The best way so far i have experienced is:
Start the numbering with two digits from your company code and then cost element category and then the numerics. If you have too many Cost elements, better to have 10 Digit numbering system.
Assumption: You have multiple company codes
For Example you company code is TP01
Activity Type Cost element:
TP43000001 - Labour Hours
TP43000002 - Machine hours
and so on
This is easy for identifying either from the consultant point of view of the end user point of view
Best Regards
Surya

Line item report on secondary cost element (cat - 21)

Hi Gurus,
Secondary cost element with category 21 is used for internat settlement from order to wbs or wbs to cost center. But can we see line item report on this cost element. Or we cannot see any line item report on this cost element. it is just used for internal settlement purpose.
Please clear this doubt. thank you

Hi Mohit,
I hope you can have line item report @ order and WBS element stright away...
for orders use: KOB1 transaction code for actual line items, where you have the facility of entering CE or CE group to find the vaues related to particular cost elements in the order. If you are flexible with CEs related to 21, give there otherwise create a CE group specific to 21 category and enter the group and find the results you want.
same way for WBS elements/projects: we have transaction code CJI3 for actual line items, here also we can enter CE or CE groups
Not only for actual line items, we have the option of viewing plan line items, budget line items, and commitment line items @ both order and WBS level with different transaction codes other than mentioned above, like KOB2, KOB3, CJI4, CJI2 etc
I hope it helps a lot if I understand your query right
Regards..
Jose

Display of secondary cost elements in KSB1

Hi
One of our customers wants to delete the view of Secondary Costs to a particular cost center in Actual View of Cost Line Items (through T Code KSB1). The costs flow to the secondary cost elements based on the activity type carried out. The system is calculating the total cost and then deducting the secondary costs again from the total cost as a result of which the overall costs are in the negative. The customer wants to display the total costs only and not the flow to the secondary cost elements, even, though the data is posted for the current fiscal year for the said cost elements.
Some transaction data already exists for the secondary cost element. We tried to changed the settings in allocation cost settings to Allocation Type 4, Manual Entry, no allocation for a future date, but still the costs are flowing to the cost element. Pls suggest a way out.
Would assign points if the problem is sorted.
regards
Sanil Bhandari

Solved

CSKA & CSKB Tables -Cost Element+ Controlling Area, Cost Element Category

I have few questions on Chart Of Accounts and Controlling Areas and CSKA(Cost elements (data dependent on chart of accounts)) and CSKB (Cost elements (data dependent on controlling area)) Tables--
1) One Chart Of Accounts has one or more Controlling Areas. Is there any situation where One Controlling Area contains many Chart Of Accounts.
2) CSKA Table contains all the Cost Elements under the Chart Of Accounts. So does all these Cost Elements appear under CSKB Table. Are there any Cost Elements which doesn't fall under any of the Controlling Area and only exists under Chart Of Accounts Level in CSKA Table.
3) In CSKB Table How do we know the corresponding Chart Of Accounts for the Cost Element.
4) In CSKB Table Cost Element Category depends on both Cost Element and Controlling Area. So does a Cost Element can be Primary Cost Element for one Controlling Area which happens to be GL Account and Secondary Cost Element for some controlling Areas.
5) Are there any Company Codes under the Chart Of Accounts which doesn't belong to any of the Controlling Area and doesn't have any Cost Elements.

Hi,
1) One Chart Of Accounts has one or more Controlling Areas. Is there any situation where One Controlling Area contains many Chart Of Accounts. Never
One controlling area can be assigned to many company codes, but all must have been assigned to the same chart of accounts only. This is the pre requisite for the so called cross company controlling
2) CSKA Table contains all the Cost Elements under the Chart Of Accounts. So does all these Cost Elements appear under CSKB Table. Are there any Cost Elements which doesn't fall under any of the Controlling Area and only exists under Chart Of Accounts Level in CSKA Table.
If some data exists in CSKA table, it mean that, it must have been created as a CE in any of the controlling area
3) In CSKB Table How do we know the corresponding Chart Of Accounts for the Cost Element.
In CSKB, you wont get the correspondant COA for the given controlling area. If you want to know it pass field value CSKB-KOKRS to table field TKA01-KTOPL to get the assigned COA
4) In CSKB Table Cost Element Category depends on both Cost Element and Controlling Area. So does a Cost Element can be Primary Cost Element for one Controlling Area which happens to be GL Account and Secondary Cost Element for some controlling Areas.
You cannot create a secondary cost elemant using a key matching with an GL code in cross company controlling. In case of both company codes assigned to different controlling areas this can be possible
5) Are there any Company Codes under the Chart Of Accounts which doesn't belong to any of the Controlling Area and doesn't have any Cost Elements.
Only In case of CO module is not active for the a company code
Note: If you have more queries, post it separately rather than asking all in one thread. and be specific with your requirement with the actual scenario.
Thanks,
Srinu

Planning on secondary cost element_cost category 21(internal settlement)

Good Day
I would like to know whether it is possible to do planning on secondary cost element with a cost category 21
The internal cost element is used to settle order costs or project costs to objects in Controlling (CO), such as orders, profitability segments, cost centers, and projects. I would like to allocate a plan value to the secondary cost element because the cost element is found in a sttlement profile for a Plant Maintenenance(PM) work order and at the period end the actuals is moved from PM order to the internal order settlement cost element. However this is a problem cause the planning values is allocated to the primary cost element and the actual values are posted to the cost element with cost catergory 21 during order settlement.
Please advise and if possible give me a workable solution to solve my problem.
Regards
Ropetra

Good Day
Thank you for you response. I would like some more detail on the following:
Please can you advise me as to where and how you set up the settlement for planned values on the secondary cost element_cost category 21(internal settlement)
Regards

Report on Secondary cost elements

Hi all,
Can any one tell me how to see line item report on the secondary cost element that are used in asessment cyles and also how to display the documents that are generated for these secondary cost elements after running the asessment cycles.
Thanks

Hi MKR,
I am assuming that your assessment cycles are tied to cost center as senders, so even though you don't look by assessment cycle you could use transaction S_ALR_87013611. Set the selection criteria for the Controlling Area, month year/period combination and version you need, leave the cost center fields blank and enter as cost element the secondary cost element(s) of your cycles. After executed, double click on the total actual cost amount associated individually to each cost element and an additional screen would be displayed, from where you can select the option to display actual line items report. The list of line items is displayed. If you have the ALV functionality additional columns can be added in the display to segregate the information based, transaction type, origin, etc.
Hope it helps , if it does please award points.
Thanks,
GG

Creation of secondary cost element

Hai SAP Gurus
Could any one please let me now how to create secondary cost element in SPRO.
Thanks.

You can create secondary cost elements in KA06. There is no pre-requisite of creating GL accounts.
Cost elements describe the origin of costs. Cost elements are defined as either
primary and secondary. Primary cost elements arise through the consumption of
production factors that are sourced externally. Secondary cost elements arise
through the consumption of production factors that are provided internally.
The Chart of accounts contains all general ledger (GL) accounts belonging to
Financial Accounting.
Expenses and Revenue accounts in Financial Accounting correspond to
Primary Cost and Revenue Elements respectively.
Secondary Cost Elements are used exclusively in CO to identify internal cost
Flows such as assessments or settlements. They do not have corresponding
General ledger accounts in FI and are defined in CO only.
When you create a cost element, you must assign a cost element category. This
Assignment determines the transactions for which you can use the cost element.
You can create cost elements automatically by making default settings that are used
To specify the cost element, or cost element interval that you wish to create.
You can create cost elements manually in bulk with the help of LSMW or BDC.
Primary Cost Element Categories:
1 - Primary costs / cost-reducing revenues
3 - Accrual / deferral per surcharge
4 - Accrual / deferral per debit = actual
11 - Revenus
12 - Sales Discounts
22 - External Settlement
Secondary Cost Element Categories:
21 - Internal Settlement
31 - Order / Project results analysis
41 - Overhead Rates
42 - Assessment
43 - Internal activity allocation
50 - Project related incoming orders: Sales
51 - Project related incoming orders: Others
52 - Project related incoming orders: Costs
61 - Earned Value
Regards,
Ravi

Difference between type of Secondary Cost Element Category?

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