Use of Cost Element in Unit Costing?

[surjitsingh1209]

Dear Experts,

I'm fresher in this module and now try to gether the knowledge, please help. Now i want to nkow about the use of Cost Element in unit costing and cost element and G/L account both are different or not.

Pease help.....

Thanks.

Surjit Singh

[former_member195427 · Accepted solution]

Hi Surjit,

           use of Cost Element in unit costing

Cost elements are required to ensure comprehensive reporting and detailed planning.It also helps to identify that if we can post to them directly or indirectly.

It also helps us to identify the kind of expenses or balances.For ex. In constructing a home , while costing you may represent furniture and interiors related costs via different cost elements along with their estimated prices.

I just gave you a general idea on it ,you more details kindly follow the below given links:

http://help.sap.com/saphelp_470/helpdata/en/08/5144dd43b511d182b30000e829fbfe/content.htm

http://help.sap.com/saphelp_46c/helpdata/en/7e/cb859a43a311d189ee0000e81ddfac/content.htm

G/L account both are different or not.

G/L: G/L is a FI related object . Cost element is a CO object.Both of them are used to categorize costs. Generally it is difficult to differentiate between the two because each G/L in FI has a corresponding cost element in CO.

The data from G/L accounts is used in balance sheet accounts and P/L accounts whereas in CO cost element collects data from G/L and distribute it to different cost centers.Hence, cost elements are used for assessment and settlement purposes.

G/L specifies the kind of expenses i.e. labor cost, travel expenses etc. whereas cost element specifies where these costs are needed to be incurred i.e. MMD department,Planning dep. etc.

Useful Links :

http://scn.sap.com/message/5746373#5746373

http://scn.sap.com/thread/1517932

http://scn.sap.com/thread/648242

NOTE: Cost elements are also categorized into two parts:- Primary CE , Secondary CE. Search more about them in FI-CO forum . there are so many related threads.

Additionally, Find more about, profit centers , cost centers, cost carriers, cost objects .

I hope you will get to know a lot in them.

Regards

Ankur

[sanjeevc]

HI,

Whatever planning we do in sap ps that is unit cost, as you are going to making warehouse so you take estimate for

Civil and PEB Works

Electromechanical

Interiors

Automation

Furniture

this cost will go in cost element and G/L would be correspond for cost transportion.

Regards,

Sanjeev