Setting of Cost Element category
Hi Experts
I have a query around whether to set particular accounts as Category Primary Cost Elements (1) or Revenue Elements (11).
We are a financing business and generally split our P&L into Income, Expenses and Bad Debt. Currently all cost elements under Bad Debt are defined as 1 Primary Cost Elements but this means that the business need to enter a cost centre when posting to the accounts.
The business have argued that they do not need to analyse Bad Debt by cost centre - simply by Profit Centre, in the same way as Income.
Can you tell me:
Is it possible / advisable to change the Bad Debt cost elements from being Primary Cost Elements to being Revenue Cost Elements?
What are the implications if we make this change?
Thanks
Gareth
Thanks Venkat
Apart from the process of changing the COst Element Category, is it advisable for 'Bad Debt accounts' to be classified as Revenue elements in CO?
The accounts are expense accounts in FI. Are there any implications in classifying them as Revenue elements?
Will changing them to be Revenue elements:
mean we are no longer required to populate Cost Centre?
still enforce the recording of Profit Centre for transactions posted there?
Thanks
Gareth
Similar Messages
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Cost element category 11 problem
Dear Experts,
While creating PR using GL account xxxx this error message appears:
Revenue cannot be assigned to CTR xxxx//2222
Message no. KI 295
Diagnosis
The given object is not a valid additional account assignment for revenue or debit postings.
Procedure
In this transaction only use additional account assignments that allow revenue postings.
I've check through KA03, the CE category is "revenue" (category 11). I've tried using another CE (e.g: CE category 1)to creating PR and its works.
How to fix this issue since the user still want to use the CE with category 11?
Pls advice.
Thanks.Cost centers are for monitoring costs. When you allow the revenues to be posted to a cost center, it means that you are controlling the revenues also with the use of cost center controlling.
In your case you are using GL account which has been created as revenue element(category 11). To revenues any costs being assigned to cost centers will not be allowed. When you use a cost element (category 1) it posts as you are using this to post costs. SAP recognises this as a cost when you post to this category.
As far as possible you should avoid posting revenues to cost centers. Let me know if you need any further clarification.
Karthik -
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 -
How to link GL Account with Cost element category
Hi,
I have to generate a report by querying tables SKA1,SKB1,SKAT and CSKB.
Step 1.Firstly I have queried SKA1,
step 2. for the obtained SAKNR(GL Accounts) from step 1,I have queried SKB1 table
step 3. For the obtained SAKNR from step2, I have queried SKAT table.
Now, I have to get KATYP(Cost element category) from CSKB based on the above steps.
Please can you let me know the procedure to fetch the Cost element category(KATYP) from CSKB based on the above 3 steps?Hi,
a cost element (primary cost element, thats what we are talkgin about as you want to join them to FI account numbers) is created per controlling area.
If your comp.codes to be reported use different controlling areas you have to identify which controlling area is used for which comp. code (tab. TKA02) and join the skb1 account number to cskb cost element number for reporting the KATYP.
BR Christian -
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
ShubhamHi,
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 -
Change cost element category from 1 to 11
Dear all,
We created by mistake revenues accounts with cost element category 1 instead of 11.
We created a sales document (contract) with account assignment to a WBSE. The revenues were appearing as negative planned cost so we realized the mistake.
Now we have deleted the item in the sales document, we have created a new revenue account with the correct cost element category 11 and we have added to the account determination (VKOA).
Now the revenue appears in the new cost element. Nonetheless we still see the revenue value as a negative planned cost.
If we create a new project and a new sales document everything is correct. But we want to mend the first one. Any idea of how?
Best regardsFantastic !
Thank you very much -
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.
RegardsHi 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 -
SAP Standard Report for Cost Element Category
Hi All,
I just wanted to know that if there are any report(s) involving Cost element categories. Say for example, if the cost element category is provided the report fetches the cost elements associated with the category and the documents posted.
Thanks and Regards,
Gnanasambanthan.VHi,
There is no standard report based on cost element category, but of course, you can use, for example, KSB5 and give the selection of the cost elements you want to present. I presume, you have different number range for each category and it could be easily distinguished in the selection screen.
Regards,
Eli -
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 -
Seconday Cost element Category Uses and Importance.
Hi ,
Can any one explain me the seconday cost element uses and importance in cost accounting ?
Especially for the Cost element categories
21-Internal setellment.
42-Assesment.
43.Internal Activity allocation.
32-Order/Project result analysis.
when to use which cost element Category and examples.
I understand in the Cost sheet for the Overhead Calculation we use Seconday CE category 41.
But in the Allocation structure at the time of giving the Cost elements, i will get confused to assign the CE's.
This will be the great help.Hi Prad,
21-Internal setellment - This category of cost element is used to settle the costs collected in a cost object to another cost object within Controlling. You cannot settle to FI or any toher Module using this category of Cost Element
42-Assesment
Assessment is a type of allocation of costs from one cost object to another cost object say from one cost center to another cost center.
In case of Distribution, the cost gets allocated using the origical cost elements. hence the origin of the cost will never be lost
But in case of assessment, you need to allocate the costs using a seperate cost element with category 42. In this case, the cumulative cost collected is allocated to another cost center unsing this assessment cost element. Hence the origin of the cost is not retained.
From a business requirement perspective, we need to use distribution for allocating the service costs to real cost centers. After that we need to use Assessments
43.Internal Activity allocation.
Using this type of cost element, we can plan, calculate the prices of activities and obsorb the costs to Production Orders, Service orders etc.
this plays very crucial role in cost obsorption in product costing or sevice costing areas
32-Order/Project result analysis.
One of the most important and complex area in Product costing would be Calculation of WIP/Result Analysis.
We will be able to calculate and settle the WIP or Result analysis value to FI only by using Cost elements created with Category 32
I hope i made it clear to you.
Please let me know if you need futher information in this regard
Surya -
Sum1 Please tell me the Table to extract Cost element category (SAP ). Cost
Sum1 Please tell me the Table to extract Cost element category (SAP ). Cost element category should be unique key?
Hi,
I don't see the cost element categ in CSKA (chart of account based).
Better try CSKB (controlling area based.
The Domain is KATYP and you can find cost element categ description in its value range
[genereic extraction possible for these texts...]
hope that helps...
Olivier.
Message was edited by:
Olivier Cora -
Discount on Sales (Cost Element Category)
Hi,
Discount on Sales a/c should be Cost Element Category 11 Revenue or 12 Sales Deduction.
Please advise which one is ideal because in future client is going for COPA.
Regards,
HarishHi
Is the client going to use COsting based or Account based COPA -
Costing COPA and cost element category '1' for Revenue and COGS
Hi,
In my SAP environment historically Revenue GL accounts were created as cost element with category '1' (costs) and are being posted against cost centres. I know it is not SAP best practice, but it has been working like that in here for years. We have not activated and used COPA so far.
I am currently analysing options of implementing costing based COPA. I wonder if the fact that Revenue and COGS accounts are created as cost element with category '1' should cause any issues with COPA.
I know that in a perfect world it should be '11' for revenues and '12' or no cost element for COGS, I just hope we can leave CE category '1'.
Thank you,
KarolHi Ajay,
Thank you for explanation. I feared it would cause issues. However, I checked with one company code that has active COPA.
It has two Revenue accounts: one set as '11' , which is used for most automatic SD postings and other one with '1' category which is 'Other revenues' - sometimes used for automatic postings (configured in VKOA for services) and often used for manual revenue postings.
What I noticed is that documents posted for this 'Other Revenues' were posted against cost centre but also profitability segment was populated. However, it was only populated with sales quantity, no Revenue value field was updated. It must have been configured so it does not show error in COPA but update is not complete in PA table. No COGS split value fields are updated as these postings refer to services.
What I also obseved is that all COGS accounts are set as '1' and are linked to cost centre. But this seems to not affect COPA and it creates COPA document with correct COGS split into cost component category value fields.
So I assume this is only issue for Revenue accounts with '1'. COGS can be left with '1' for time being.
Do you know which config for Revenue account with '1' might have stopped COPA from giving error while posting invoices in SD?
Thank you,
Karol -
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) -
Statistical Cost Element / category 90
Hello all:
I have create statistical cost element with category 90 .
I assign one cost center to Asset too.
Then I do f-90 to acquisition asset already, it really debit my G/L reconciliation (which I have stat cost element =90)
but which report I can see report total of this stat cost element ? with cost center that I assign in G/L?
Standard cost actual /plan report (S_ALR_87013611) not show the value of statistical cost element???
Thanks in advance.
Best Regards,
ManthanaHi,
that is right, the S_ALR_87013611 (report 1SIP-001) is only selecting value type 4. You can copy the report 1SIP-001
and create a customer-defined report in GRR1. After that, you can add the value type 11 to the column definition
in GRR2.
Regards,
Greta
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