why All the GLs codes are required Cost centers

[S0010887214]

Hi All,

While creating a GL codes the secondary cost elements are creating automatically.Please do let me know why all the GL codes are required secondary cost elements and how we can use this in FI while accounting the documents.

[pratik_ghonmode2 · Accepted solution]

Hi Raghavendra,

As said by the Rajneesh Sir, When you are creating GLs account in FS00, you can automatically create Primary Cost Element by maintaining Setting in OB13. You can create Secondary Cost Element in KA06.

The purpose of maintaining Secondary cost element is;

If you want to settle cost from CO Object to Co Object through secondary cost elem. is possible.

Assessment, Distribution & Settlement is not possible without Secondary Cost element.

When you are posting any document in FI, there is no need of Secondary Cost Element. The data will transfer through Primary Cost Element in Controlling.

I hope now you understood.

Regards

Pratik

[S0010887214 · Accepted solution]

Hi,

Thank you so much for you answer..Please do let me know what is the difference between primary cost and GL codes..?

[pratik_ghonmode2 · Accepted solution]

Hi

Here is yours answer;

Primary Cost Element: Primary cost element nothing but the cost transferring object because of this only the cost will be updated in CO.

GL Codes: What are the coding your giving to the particular GL Account, the same coding you have to provide for the Primary Cost Element. The system will relate the relationship between GL A/c and Cost Element(Primary).

Regards,

Pratik

[sattaiah_gundu1]

Hi Raghavendra,

• Cost Elements are like Materail costs, Personnel costs, Energy costs and etc., where a corresponding GL account exists in FI to allow costs to flow.
• When Cost Element carriers cost between FI and CO they are called Primary, the link is established GL A/c = Primary Cost element.

Warm Regards

Sattaiah Gundu

[sattaiah_gundu1]

Hi Raghavendra,

Secondary cost elements will not create automatically but we can create Primary Cost Elements automatically as Pratik Ghonmode explained.

Secondary cost elements are used for Assessment, Distribution and Settlement.

We will not use Secondary cost elements in FI while accounting the documents.

Warm Regards

Sattaiah Gundu

[rajneesh_saxena]

HI

These can not be secondary cost elements and must be primary only.

In your chart of account there is setting for this enabling primary cost elements to create automatically.

Primary cost elements are used to replicate the costs in controlling module.

Regards

Rajneesh Saxena