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Former Member

cost center

hi all

How are revenues dealt with cost centers.

rgds

sree

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1 Answer

  • author's profile photo
    Former Member
    Posted on Sep 28, 2007 at 04:46 AM

    Hello

    In controlling, the cost element category types are specified depending on the nature. For example:

    11: Revenue elements

    The cost element category is used to post revenues.

    Revenues are displayed in Controlling with a negative sign (-). An exception to this is Profitability Analysis (CO-PA). In CO-PA revenues are displayed with a positive sign (+).

    If you post revenues to cost centers, the values appear as statistical information only. This means that you can repost revenues for posting adjustments to other cost centers, but another allocation is not possible. Revenues are ignored in iterative activity price calculation and are therefore not included in the allocation price of an activity type.

    Before you define a revenue element, check whether the posting is in the form of a credit memo whose costs you want to take into account. If this is the case, use cost element category 01 (primary cost elements), not category 11 (revenue elements). These credit memos appear as negative costs and are processed in the same way as all other cost elements of category 01.

    Reg

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