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Former Member

Difference betwn Cost element & G/L Account

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 !!!

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2 Answers

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    Former Member
    Jul 08, 2008 at 09:42 AM

    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

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    • 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.

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    Former Member
    May 22, 2009 at 06:43 AM

    nil

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