Meaning of cost element

please explain about cost element. In OBYC we use this concept.
since i am not a FI consultant neither  I have FI background.
I have gone through the defination but could not understand the concept.
Please donot provide that definations as it won't serve the purpose.

Dear Geetika,
Cost element is nothing but your Profit and Loss GL accounts you create in Finance.
For ex. If you got various expenses like Administration exp, Sales Expense, Stationery Expenses etc... all these will be created as a GL account.
All these GL will be created as a Cost element in the Controlling module in order for reporting purpose.
So when ever you post the FI entry for any expenses for which a cost element is created, a corresponding entry will be posted to Controlling modules for reporting purpose.
Cost elements cannot be posted individually , it has to be collected in a Cost object . Cost Centers, Internal Order, WBS elements
are some Cost objects against which cost elements can be used.
Cost Elements has two types
Primary and Secondary cost elements.
Primary cost element is the one which we create with reference of GL  and it will be identical to your GL account.
Secondary cost element can be created as per your desire.
OBYC setting is used for MM integration and there is no link between cost element and OBYC settings.
Thanks and regards
Praveen.J

Similar Messages

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    Hi Shiv,
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    Worached
    Reward points if it is helpful.

  • Report for Missing Cost Elements

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  • Cost element category 11 problem

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  • Cost element description now showing in Report painter

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  • Report Painter Report - Leading White Spaces in Cost Element

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

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    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,
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    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.
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    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.
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    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.
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  • In controlling secondary cost element cost is considerble for financial rep

    in controlling secondary cost element cost is it considerble for financial reporting requirment. In controlling for pm orders based on planning in kp26 they are booking man hours  activity price. when at time of confirm of the order planning converted to actual.
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    Hi,
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    This may be useful
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  • Duplicate Entries For Cost Elements

    Hi All,
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    Dear
    Can please confirm  wether this depdends are for any MTO order ? I mean you have Sales Order for FERT with MTO item categoery and running MRP  in MD02 .In that case whether , it is generating multiple similar MRP  elements.
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    Edited by: Jiaul Haque on Nov 22, 2010 1:13 PM

  • Instance where Secondary Cost Element Linked to GL also

    Hello Gurus,
    What are the instances where secondary cost element is a GL also.
    Regards
    Rohit

    Dear Rohit,
    You will not find any instances were secondary cost element is linked to GL.
    Secondary cost element can be use within co. Linking cost element to GL means integration between FI and CO.
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    Rupesh Kumar Singh

  • Planni values at cost element group level instead of at cost element level

    Is it possible to plan values at cost element group level instead of at cost element level in BI?
    Similary I have another question for financial statements.
    Is it possible to plan values at financial statement level instead of at G/ in BPS or SEM?
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    Hi.
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  • Plannig values at cost element group level instead of at cost element lev

    Is it possible to plan values at cost element group level instead of at cost element level in BPS or SEM?
    Similary I have another question for financial statements.
    Is it possible to plan values at financial statement level instead of at G/ in BPS or SEM?
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    You mean that I am on the wrong forum. Which forum is useful  for me for this question?
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  • 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.
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    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.

  • 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

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