Effect of Primary or secondary cost Elements in Cost Planning (CJR2)

[Former Member]

Hi All,

As per my business requirement,i have to perform Monthly planning against WBS Element.So,i selected CJR2 Cost Element planning.

Actually i dont require any cost element based planning,since i would like to do planning on Period basis,i chose Cost Element Planning.(CJR2)

SO i have created one Secondary Cost Element for Cost planning & One Secondary Cost Element for Revenue Planning & am posting plan values against that in CJR2.

I would like to know ,what am doing is correct or not?

Is there any impact on Finance / Accounts side,because of this Cost Elements?

Shall i use Secondary Cost Element for cost planning (for layout 1-701 & 1-703)?

Why should i go for Primary cost element for cost planning?

Kindly put some light s on this.

Thanks in Advance.

Suresh

[Former Member]

nil

[Former Member]

hi,

i also use CJR2 because i am required to plan by period. i would prefer to plan without cost elements by perio but since it is required i just use a primary cost element suggested by our FICO consultant. Cost element is just used to record the type of cost that is planned for the WBS element but other than planning values, it has no adverse financial implications..

regards.