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Link between Cost center, Internal Order?

Hi friends,

Can anyone please do let me know what is the link between Cost Element, Cost center, Internal Order, Activity Type? How trasnaction data will get update? I am confusing everytime..........Please clear my doubt with proper example........

Regards,

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  • Best Answer
    Posted on Dec 19, 2008 at 09:06 AM

    Hi,

    There is no technical link between these objects. The functional links could be built betweent the cost centres and internal orders, due to business requirements, when the I/O is used as additional posting object in CO. Cost element is a different dimension and represent the nature of costs (primary cost elements replicate G/L accounts). Cost elements are not cost collectors, but only carry costs to cost objects (I/O, cost centres, etc.) Activity type is a tool that allows to trigger an internal CO cost document based on the planned rates for this activity.

    I'd suggest you to read carefully SAP CO component manual; the whole info is there.

    Regards,

    Eli

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 19, 2008 at 05:30 AM

    A g/l account can be created as a cost element only if it is a p&l account. let it assume that you have a cost element, while making entry for this g/l in FI you need to specify a cost object, that may be cost center or internal order or wbs element or profit center.

    when come to link between order and cost center.

    Case1: *You have Internal Order X ( real ) and Cost center Y

    While making entry in FI you entered both order x and cc y for a line item, in this case order is a real object and cost center is a statistical object, first priority is given to the order only,in the cost center line item display you will notice this statistical values.

    Case2: You have Internal Order X ( statistical) and Cost center Y

    While making entry in FI you entered both order x and cc y for a line item, in this case cost center is a real object and order is a statistical object,in the order line item display you will notice this statistical values.

    if you enter default cost center in the order master, it will be the receiver in the order settlement.

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 23, 2008 at 05:28 AM

    Hi,

    Thanks for your inputs and closed the thread

    Regards

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