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Creation of Cost Elements for P/L Appropriations G/Ls

Hi All,

Whether Profit and loss Appropriation A/Cs like "Dividend Paid" and "Profit transferred to Reserve" should be created as cost elements?

Plz reply

regds,

Bijay

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6 Answers

  • Posted on Sep 24, 2007 at 10:14 AM

    hi Bijay,

    Each single P/L account has to created as cost element, otherwise you are in serious trouble.

    ec

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  • Posted on Sep 24, 2007 at 11:24 AM

    Hi,

    its not may be depending upon the client requirement there is no hard and post rule for maintaing cost element its depending upon management.If you want more detail let me know

    Regards,

    Satya

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  • author's profile photo Former Member
    Former Member
    Posted on Sep 24, 2007 at 11:28 AM

    HI,

    Usually the accounts like "Dividend", "Income Tax", "Profit transferred" etc will not be created as cost elements. Ofcourse, it depends purely on client's requirement.

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  • author's profile photo Former Member
    Former Member
    Posted on Sep 24, 2007 at 11:37 AM

    I have not come across any one creating these as CE. Since they are only appropriation of accounts it has got no impact on the NI also.

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  • author's profile photo Former Member
    Former Member
    Posted on Sep 24, 2007 at 11:58 AM

    Hi,

    As per the costing principles non-operating expenses should not be treate as normal costs i.e. only operating expenses are treated as cost elemens in costing. But for profit center accounting, for preparation of P & L account and balance sheet of one particular profit center, these may be required to define as cost elements.

    radha

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  • Posted on May 24, 2011 at 12:45 PM

    Thanks

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