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

[former_member197292]

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

[former_member197292]

Thanks

[Former Member]

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

[Former Member]

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.

[Former Member]

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.

[former_member558044]

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

[JozsefSzikszai]

hi Bijay,

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

ec