use of cost element category 11 (revenue)

[Former Member]

Hi All,

I am not sure why we use cost element category 11 (revenue). Its is said that posting with this type of cost center are statistical posting. Pleaes help me to understand what does it mean.

Regards

Deepak

[Former Member]

Hi Deeepak,

Kindly find the below information for your understanding :

Cost Elements

There are two types of cost elements:

• Primary cost elements, and,

• Secondary cost elements

Primary cost elements have a one-to-one relationship with the Profit and Loss accounts in FI while secondary cost elements are used for allocation purposes among CO objects such as cost centers, internal orders, production orders and profitability segments.

Cost elements are differentiated by using cost element categories. Cost element categories are pre-defined in SAP and they control the source as well as usage of cost elements. Examples of cost element are “1” for primary costs/cost-reducing revenues or “11” for revenues.

Revenues are generally defined as cost element of category 11. In Controlling (CO) revenues are displayed with negative - sign.

Caution:

  If you post revenues to cost centers, the values are displayed as statistics only (for information purposes). This means: You can repost revenues to other cost centers to correct postings, but other allocation is not possible. Revenues are not taken into account during activity price iteration and are therefore not included in activity allocation prices.

please let me for further clarification if any.

Regards

Murugan c

Regards

[Former Member]

Hi Deepak

Cost Element category 11 is used for revenue which is help to get the value for COPA Document

which are assigned to Valued field further is easy to identify the Sales Revenue through COPA document

Hope this is clear

Thanks

Trinath

[Former Member]

Hi Deepak,

Please check cost center report S_ALR_87013611 - Cost Centers: Actual/Plan/Variance.

You will see the statistical posting there is grouped under different table called statistical and it will not offset to the real posting for those cost center with cost element category 01.

regards,

Jack

[Former Member]

Hi Deepak,

Cost Element Category 11 is used as a Revenue Element. If we post revenues to cost centers, the values appear as statistical information only.

The statistical posting can be defined as transfer of entry wherever the CO object is not directly assigned but derives the entries through a real (time) posting to other CO objects.Statistical Posting is for the information & reporting only.

It is possible in sap to post to single or multiple cost objects, when you post to single cost object then its considered as real and when you use multiple cost objects for the same line item then one considered as real and all other cost object for that lines becomes statistical. SAP has standard rule to decide which cost object need to be considered as real and which one as statistical unless you use one cost object that is defined as statistical only and other one as real.

You need to create cost element/revenue element for Cost of Good Sold and Sales.The difference  between Cost of Goods Sold Account and Revenue account is in the cost element category.However settings of the cost element category for Cost of Goods Sold and Sales Account also depend on whether the organisation use CCA, PCA only or also use COPA Module.If your organisation is using COPA then it may not be useful to set the Sales Account as Revenue Cost Element and the Cost of Goods Sold Account as Primary Cost Element as they can check margin in COPA.

Planning revenues on a cost center with cost element category 11 is a statistical posting only. Statistical Postings can not be transferred from  cost center accounting to profit center accounting. Only cost centers can have revenues as statistical postings.

Thanks & Regards

Subhasish

[Former Member]

Hi Deepak,

If you set a cost element with category 1 (cost) you must fill CO true object such as Cost center, Internal Order when you post transaction. If with category 11, not need. That is your choose, up to you and solution.

Regards

[Former Member]

Dear All,

Could you please provide your views on this.

Regards

Deepak