what is meant by cost element

[Former Member]

hi

what is meant by cost element

[Former Member]

hI,

a "cost element" is the CO entity that reflects a G/L-account. They are only intended for gain-and-loss accounts, not for balance.

it in tables COSP or COSS, for instance. Or in CSKA for master data...

Regards

Message was edited by:

skk

[Former Member]

HI.

Differentiation of Cost Elements

Use

In call management, it is necessary to differentiate cost elements further for the settlement of orders in profitability analysis. Both the costs incurred and the sales deductions are classified according to their source, and assigned to the appropriate cost elements. For example, the following costs are differentiated:

Sales costs

Warranty costs

Good will costs

Sales deductions due to warranty

Sales deductions due to good will

The differentiation of costs and sales deductions enables you to assess more accurately the profitability of your products.

Integration

The differentiation of cost elements is only of use if the service orders are settled in profitability analysis.

Prerequisites

Resource-related billing must be performed for service orders.

You must have defined the accounting indicator in Customizing for Plant Maintenance.

When you create a service order, you define the accounting indicator in the header, under administrative data. Currently it is only possible to have one accounting indicator per order.

Once the order is released, the accounting indicator can no longer be changed in the order header.

Features

When actual postings are made for a service order, the system creates CO single records and a CO totals record. When doing this, it copies the accounting indicator defined in the order header, and enters it in the origin of the totals or single records.

In addition to the variance class and the cost element, the accounting indicator is a further characteristic of the PA transfer structure.

The transfer of the accounting indicator to the origin also makes it possible during the settlement of a service order in profitability analysis, to navigate more specifically in the PA transfer structure. The costs and sales deductions for warranty, good will, and sales are entered in the respective value fields.

Reward all helpfull answers.

Regards.

Jay