Material and cost element

Hi All,
Can someone clarify this?
Do we assign a material to a cost element? If so why do we do that.
All i know is every material is assigned a valuation class which is used in account determination OBYC.
Regards,
Reddy

Hi,
The Cost elements are created from Costing point of view. Generally the valuation class have the assignement to GL Accounts in OBYC Account assignment.
Sometimes it happens that some of the material are directly consumed to the cost center, in such case we have to assign the cost elements (GL Account) to cost center in OBK9. if the user wants to have the effect in directly to COPA, you should check the profitability segment in OKB9.
So understanding indirectly, Materials are to be assigned to Cost element to be effected in Controlling.
I hope you understood.
Regards,
Jigar

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