Which G/L accounts to be created as Cost Elements
Hi
I wanted to know which G/L accounts should be created as cost elements since there are some G/L accounts that are usually not created as cost elements. Wats the logic that one needs to keep in mind while creating cost centres?
Hi,
G/L accounts are of two types
1) Profit and loss account
2) Balance sheet account
There are two types of cost element
1) Primary Cost element
2) Secondary Cost element
In P&L statement, expenses and revenues are shown.
Similarly in cost center costs are depicted, maybe departmentwise or product wise, etc..
So for every P&L account primary cost element is created so that these costs flow to cost center or in other words it is reflected both in Financial accounting and in Controlling.For secondary cost element you dont require an existing G/L account.
In short secondary cost element are used for assessment and distribution
I hope your doubt is cleared
Asha
Similar Messages
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Finding G/l account created as cost element.
Hi All,
Is there a t.code or a table which shows me if a certain g/l account has been created as cost element?
Thanks
GandalfHi
thru KA23 u can see the list of Cost elements defined in ur system. This obviously will be equivalent to ur GL numbers. By comparing this with S_ALR_87012326 (list of GL accounts) you can identify the cost elements to be defined.
Let me know if a direct way is available
Thank You, -
CO-PA: COGS accounts created as cost elements
hello,
I have a question regarding COGS accounts, being created as cost elements. This was not causing problems, because client was using real internal orders for profit analysis. In the next phase of project, during implementation of costing based CO-PA, now I have problem, because of this situation, because I can not delete created cost elements (only possible at the beginning of the new fiscal year) , and the system asks for cost object assignment during GI creation. I was considering OKB9 assignment, but I think this will cause double values in CO-PA. Maybe temporary solution, by using real internal orders till the end of the year, and then deleting existing cost elements for COGS accounts, could work?
Please, advise what to do to solve this situation.
Thanks in advance,
DuskoHope you are not using account based COPA
To avoid double values in COPA, you can do one of two things,
1) after the costs are transferred to the internal order, you can just keep them there without doing settlement, let the users know that there will be under absorption for the internal order.
2) If the users are not willing to have under absorption in the internal order, you can transfer the costs to a value feild in COPA which is not reflected in the report in KE30 (Remember that you may loose one value feild in COPA this way)
Both make no effect on KE30 report as data will be transfered to COPA at the time of billing
Br Naveen -
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 advanceHello
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 -
Consumption accounts not created as cost elements - Implications
Hi
There are following GL accounts as an Expense GL accounts:
Cost of Raw Material Consumption
Cost of Finished Goods Manufactured
Cost of Finished Goods Sold
Change in Stock WIP.
I have not created them as cost elements since its asking me cost center when i do any PGI or issue to sub contract stock, etc.
So i wanted to know the implications on CO-PA if i do not create cost element. I believe that value will flow to CO-PA on the basis of material code.
Further my doubt is, if i do not create it as cost element, how it will impact my cost center reports and product costing.
Please help. I am confused very much.
Edited by: Meenu_ND on Aug 4, 2011 7:55 PMHi Meenu
cogs - can not be created as cost elements- GBB-VAX- COSTING BASED COPA- MTS
Can be created as cost element -GBB-VAY- COSTING BASED COPA- MTO
always as a cost element GBB-VAY- Accounting based copa
Thanks
ram -
Check list for creating a cost element?
Hi,
Who can provide a check list for creating a cost element?
Thank you.
Kind regards,
LindaHi,
Cost Elements are broadly of two categories - Primary and Secondary cost elements.
In case of primary cost element a GL Account should have been created and in case of secondary cost no corresponding GL account should exist. Secondary Cost Elements are used only in Controlling Module. The transaction codes are:
KA01 - Create Primary Cost Element.
KA06 - Create Secondary Cost Element.
KA02 - Change Cost Element
KA03 - Display Cost Element
KA04 - Delete Cost Element
KA05 - Display Changes
Once transaction data is posted Cost Element cannot be deleted.
Another point in Cost Elements is defining the Cost Element category. Cost Element category determines which Cost Element category can be used for which Business Purpose. For example cost element category 1 is used for primary costs and 11 is used for revenues.
In the default account assignment tab, we can define a cost center / internal order and always the postings for that cost element will be posted to that cost object.
Thanks
Murali. -
What type of P&L Accounts does not need Primary Cost Element ?
Hi
The General rule is to create primary cost element for all the P&L items (GL Accounts).
However, it seems like certain P&L items are not suppose to create primary cost elements.
How do i know under what circumstances a P&L items need to create primary cost element and which are the one not require to create primary cost element?
Moderator: Please, search SDNHi Friends,
I, my self resolved the issue. by considering the following 3 rd strategy in
For Activity Type/Processes: Considered 3rd strategy as below:
Activity Types/Processes: 1 plan Price for the Period, 6 Most Up-to-date Plan Price
and 2 Plan Price as Average of All Fiscal Year Periods.
Now it has been resolved.
Thanks all.
Now it is closed.
Vemula -
Hi,
If COGS is created as cost element in CO-PA but in OKB9 no cost center is assigned & CE Category used is 1...does this means there will be double posting in CO-PA ???
Regards,
VarshaWhen the Profitability Segment has not been assigned, the Cost center would be the default assignement.
So, when it is not Profit related, obviously Cost related. So there won't be any duplicate posting happnes.
Moreover, this is only for Automatic Account postings like, discounts, qty differences and price differences.
Thanks -
How to create new cost element catagory
Hi,
Can any one let me know How to create New cost element catagory other than standard cost element catagory.
Thanks & Regds,
Sany.....Hi,
We are using one GL to post expences as well as revenue for the same. In copa primery cost elements are not allowed & if i set clem cat to revenue it wont allow me to book purchase in same GL.
Waiting for your reply.
Regards,
Sany. -
OBR2 CHART OF ACCOUNT IS USED AS A COST ELEMENT
Hello,
We try to delete some GL accounts via OBR2, we also deleted the Cost elements in the related controlling areas but still we are not able to delete them - > message saying that still this chart of account is used as a cost elements
any thoughts?
Thx
Moderator: Please, avoid writing threads in CAPITAL lettersHi,
Please delete cost element by TRC:KA04.
Regards,
Gaito -
Error in account determination while creating shipment cost document in SD
Dear all,
I have come across a case where an error has come in determining account while creating shipment cost document. This is happening only in the case of a particular shipment cost type. The Status of " Calculated" is C, the status of " Assigned" is " B" and the status of "Transferred" is A.
Can any one throw any light as to why it is happening like this?
Thanks and best regards
KumaranDear all,
With the help provided, I am unable to resolve the issue.
Any further inputs please?
Thanks & best regards
Kumaran -
GL Accounts Not created as Cost Elements
Whether all the Expenses -GL Accounts are to be created as Primary Cost Elements?
What are all the exception of GL Accounts that won't be created as Primary Cost Elements apart from the Business Decision?
Thank youthis has been asked 100 times before. Please search the forum before posting.
-
How to created an cost element group structure from P&L FSV
Hi All,
My client has changed his financial statement version and I have to change the cost element group structure according to the new profit and lost structure of this new FSV.
Do you know any transaction to do this automatically?. For example the creation of the sets' structure can be done by FSE5, is there any similar for cost element group structure?.
Many thanks in advance!Hi NIketa
Whats the detailed error message? Can you paste that here?
Also, check the following, which may resolve your issue
1. If you are settling to the Top most WBS, i.e. to the project itself, do not do that... Settle it to a lower level WBS, atleast one level lower than the project...
2. Check if the status of that WBS is REL (released) and
3. The flag for "acct asst elem." is checked in the WBS element
Regards
Ajay M -
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 PMHi,
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 -
Error while creating material cost estimate
Hello All
I am creating material cost estimate of FG whose components are SF & ROH-2. While creating cost estimate system gives an error message which states: :
*No cost element segment exists for 40103110 on 01.09.2009
Message no. CK048
Diagnosis
The consumption account found by automatic account determination for material STD-PRICE-SF does not exist for the date 01.09.2009 specified.
Procedure
Check the cost element segment's validity period
Check cost element
Or, if you have authorization, create a cost element which did not exist previously.
Create primary cost element*
Please provide your valuable inputs regarding this error message. Looking forward to your inputs & feedback.
Regards,
J K TharwaniDear Jitendra,
Its Seem primary cost element you mentioned is not defined for 09 period.For this go to KA06,gIve that cost element number and the Valid from date as 01.09.2009 and valid to date as 30.09.2009, press enter it will take u inside the T.C,feed the relevant data and save.
Now again take the costing run.This time system should not throw the error.
Check and Revert back.
Thanks and Regards,
Jitendra DIlip Chauhan.
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