Difference betwn Cost element & G/L Account

[Former Member]

Hi All,

I would like to know the diffrence betwn Cost element & G/L Account Number & use of both ?

Suppose while posting some Actual cost to WBS Element ,will that amount hit G/L Account or Cost Element?

Kinldy give me the answer with some Examples.

Thanks in Advance !!!

[Former Member]

nil

[Former Member]

Postings in FI affect G/L account. Postings in CO are made to cost object (WBS in case of PS) against cost element.

G/L in FI has a corresponding cost element in CO.

G/L or cost element are basically used to categorise costs. For eg material cost, labour cost will have differnt G/L and cost element. So in a particular WBS, you see report cost elemnt wise to view how cost is booked under diff categories.

Search for threads in FI-CO forums, that will help you.

Just to add: When you make postings to WBS, cost element will be hit in CO and G/L in FI

Regards

Edited by: Shrikant Rakate on Jul 8, 2008 3:19 PM

[Former Member]

Technically they both are same.

Both of them accumulate the revenues and expenditures of a particular type are captured.

The data from the GL accounts is used in the financial documents like Balance sheet and P/L statement.

Data in the cost element is used for internal controlling.

Regards,

Ramesh.