Cost Element

[Former Member]

Hi All,

Please let me know Cost element concept in CO??

[former_member218640]

KA01 - Create	Primary cost element created in system
KA02 - Change	Primary cost element modified in system
KA03 - Display	Primary cost element displayed in system
KA04 - Delete	Primary cost element deleted in system

KA06 - Create	Secondary cost element created in system
KA02 - Change	Secondary cost element modified in system
KA03 - Display	Secondary cost element displayed in system
KA04 - Delete	Secondary cost element deleted in system

[Former Member]

Hi Mohammed,

Cost Element - An entity in SAP which is origin of a cost & are responsible to carry a cost.

There are two types of cost element such as Primary cost element & Secondary cost element

Primary cost element - Cost elements which carries cost from FI to CO is called Primary cost element. General Ledger, Expenses accounts, Revenue accounts correspond to Primary cost elements.

Secondary cost element -  Cost elements which generally carry cost within CO are called as Secondary cost elements. Secondary Cost Elements are used exclusively in CO to identify internal cost Flows such as assessments or settlements.  They do not have corresponding

General ledger accounts in FI and are defined in CO only.

Regards,

AMol