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Income GLs as Primary cost elements (Cat 1)

Hi,

At my clients place, some of Income GLs are created as Primary Cost elements with Cat 1 and they are exempted from budgetary control. I would like to know what would be the reason behind this.., pls. note Profitability Segment is not active.

Regards,

Khan

Former Member
Former Member replied

I assume you want to know why they are 1's, and not why they are exempt from budgetary controls?

I also assume that these postings go to cost centres?

And I further assume that you were wondering why they were not created as 11's?

And that is then also the answer - they were created as 1's so that they can post to cost centres. GL accounts are created as 11's or 12's when the postings need to happen from a sales order. In that case the postings can only go to revenue enabled cost objects, e.g. Internal Order or WBS made billing relevant, or to a Profitability Segment in Profitability Analysis.

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