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author's profile photo Former Member
Former Member

Explain the logic behind creation of Revenue Cost elements

Dear all,

We have activated sales order component in Controlling Area through OKKP.

While releasing sales order it is showing error message suggesting create cost element for the revenue GL.

So that we have created revenue element of catagory 11 for that account.

Now we are going to post this transaction to Cost centers.

Is it logical to post revenues to Cost center??

will it lead to some inconsistencies in future??

Pl. suggest suitable measure..

thanks

Ranjeet

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2 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Sep 11, 2007 at 10:26 AM

    Hi,

    Posting of revenues to cost center only for statistical purpose (information purpose or reporting purpose) not do any further allocation.

    It is allowed in Std. SAP so I don't expect any inconsistencies in future.

    Regards,

    Murali

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  • author's profile photo Former Member
    Former Member
    Posted on Sep 11, 2007 at 10:28 AM

    Hi,

    If you have activated COPA you must create costelements for Revenue Accounts which is a pre-requisite for COPA. For profitablility analysis the revenue costelements data is transferred to the COPA once the COPA doc is posted. The above definition is required to transfer of Billing Documents.

    Only "real" postings that are posted to FI can be transferred to

    account-based CO-PA. All you need to do to transfer this data to

    CO-PA is make sure that the desired revenue, sales deduction, and

    cost-of-sales accounts are defined as relevant for CO.

    Thanks

    VK

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