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Cost Element

Former Member
0 Kudos

Dear All,

Please let me know What is Cost Element and how it is used ?

Thanks to all.

Regards,

Pankaj.

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

Hi Pankaj,

Cost element is a cost carrier that carries the cost from one object to another. There are different types of cost elements. For example,

Primary cost element carries the cost from the P&L GL Account (FI) to the respective cost object in CO.

The secondary cost elements carry the costs within the CO module between different cost objects.

Examples of cost objects are cost center, internal order, process order etc.

Regards,

Mike

Edited by: Michael Gerard Leo on Apr 28, 2009 12:17 PM

Edited by: Michael Gerard Leo on Apr 28, 2009 12:24 PM

Answers (3)

Answers (3)

former_member182098
Active Contributor
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General Note: Please search the forum before posting a new thread.

What is Cost Element, What is a Cost Center, What is a GL Account are all more generic questions, are answered number of times within the forums. Answers for these types questions even available on the internet also.

I would suggest the best way of knowing definitions is

http://help.sap.com

Regards,

Ravi

Former Member
0 Kudos

Hi

Cost Elements specifies the Origin of Costs.

All the P&L Accounts in FI will be Cost Elements in Controlling.

Cost Elements are Categorized as Primary & Secondary.

Venkat

Former Member
0 Kudos

cost element is used for nothing but representing a particular item of cost. For ex. maintenance expense is a cost element. Whatever amount you are incuring for maintenance expense will be updated to this maintenance expense cost element.

Cost element is used for capturing the specific costs. There are Primary and secondary cost elements.

primary cost elements require a corresponding GL account for creation it as a cost element whereas you can freely define secondary cost elements in the Controlling area.