Setting of Cost Element category

[Former Member]

Hi Experts

I have a query around whether to set particular accounts as Primary Cost Elements or Revenue Cost Elements.

We are a financing business and generally split our P&L into Income, Expenses and Bad Debt.  Currently all cost elements under Bad Debt are defined as Primary Cost Elements but this means that the business need to enter a cost centre when posting to the accounts.

The business have argued that they do not need to analyse Bad Debt by cost centre - simply by Profit Centre, along with Income.

Can you tell me:

• Is it possible / advisable to change the Bad Debt cost elements from being Primary Cost Elements to being Revenue Cost Elements?
• What are the implications if we make this change?

Thanks

Gareth

[former_member186338]

Hi Gareth,

Please describe your dimensions structure (not clear).

Vadim

[Former Member]

Apologies - I'm not sure what you are looking for exactly?

To clarify, all of the P&L GL Accounts in the Chart of Accounts are replicated as Primary Cost Elements.  We have no Secondary Cost Elements defined.

The P&L GL Accounts are in the following ranges:

• From 400000 - 499999 Income Accounts --> configured as Cost Element Category 11 Revenue in CO
• From 500000 - 699999 Expense Accounts --> configured as Cost Element Category 1 Primary Costs in CO
• From 700000 - 799999 Bad Debt accounts --> configured as Cost Element Category 1 Primary Costs in CO
• From 800000 Tax and Dividend --> no Cost Element defined

It is the accounts in the range 700000 - 799999 which I am considering changing the Cost Element Category to be 11 Revenue in CO.  I am unsure about what the implications could be.

Does that help?

[former_member186338]

What dimensions you have in BPC?

Account, Cost Center...???

[Former Member]

Apologies, this ticket has been raised in the wrong area!