Cost Elements not to be created

[Former Member]

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Hi All,

Can you please let us know, which type of P&L accounts should not be created as Cost Elements in Controlling . . .

We have list of such accounts which are not to be created as Cost Elements. Pl let us if the list is correct or not.

Cost Elements should not be created for the following.

1 Change in work in process WIP

2. Cost element for cost of goods sold transactions. (P&L Accounts maintained in OBYC > GBB > General Modification VAX)

3. Production order variances. (P&L Accounts maintained in OBYC > PRD > General Modification PRF)

4. Do not create any cost elements for financial and tax expenses if you want your CO-PA structure to stop at earnings before interest and taxes

5. Price Difference account should not be made as cost element.

Please explain for situation where COPA is implemented and where COPA is not implemented . . .

Any guidence in this regard will be of grate help . . .

Regards,

Ravi Kumar

[Former Member]

Hi,

Your list is not viable.

See, cost element only can be made for P&L item.

U can't make cost element for B/S item.

For P/L item also , u need to understand company's policy and requirement.

In your list

change in WIP is a B/s item so it is not a cost element item.

O ther Gl like cost of goods sold , generaly no company follow this GL as such head is a part of costing sheet reporting .

U need to asssigne GL which is related with that head in costing sheet.

Any way your gl like price difference, Prod order diff etc must have cost element . other wise U will get fake report on Controling.

Regards,

Pari

[Former Member]

hi

Primary Cost element is something which acts as a flow from FI to CO. if u want to avoid the creation of some cost elements in P&L first of all u need to specify that no automatic creation of cost eleents shud take place in Chart of accounts setting.

After that u need to create the cost elements for which u want to have a CO inflow.

Coming to ur question i dnt think there is any exhaustive list of accounts for which no cost elements need to be created. it is totally on requirement.

thanx

alok

[Former Member]

This message was moderated.

[Former Member]

Hi Raju,

I have mentioned a list of P&L accounts for which Cost Element should not be created.

I want to know if this list correct and complete...

If I have missed some thing, please let me know.

In the same way, by mistake if I have included any wrong item into the list, let me know . . .

Regards,

Ravi Kumar

[iklovski]

Hi,

For the best integrity of the modules, all your P&L accounts should be defined as cost elements. This is the core understanding of costs analysis. OKB9 + defining default cost centres/Internal orders will help you manage the cost elements with no manual assignment to a cost object.

Regards,

Eli

[Former Member]

Dear Eli,

Thanks for the reply.

We cant create all our P&L Accounts as Cost Elements.

If we create cost elements for those P&L accounts that I have mentioned in my question, we will face serious errors when we run WIP calculation and when we try posting from other modules e.g. realease to accounting in SD.

Thanks to you all . . . .

Regards,

Ravi Kumar