Hi Srinivas,
In a single shot to say, for all P&L A/c's you need to create Cost Elements. But you need to analyze the requirements of the client before you do it.
You need create Cost Elements in Controlling module so as to bring the values from FI to CO. There will be some expense GL accounts which the client may not be interested to take into Costing. For such GL's, you don't need to created Cost Elements.
In SAP, there are different Cost Element Categories pre-defined which classify the business transactions. Pls try to understand the functionality of Cost Element Category and usefulness of each cost element category as follows...
Cost Element Categories
The cost element category has a technical control function. It determines whether you can post to a cost element directly or indirectly.
Direct posting means: You post a fixed amount to an account by specifying the account number. You can post directly to all primary cost elements.
Indirect posting means: The system determines the account automatically at the time of posting You can not enter the account number with the posting transaction. You can only post indirectly to secondary cost elements.
The following cost element categories can be used for primary cost elements:
01: Primary cost element
This category of cost element can be debited with all primary postings, for example, in Financial Accounting (FI) or Materials Management (MM).
03: Accrual cost element / percentage method
This cost element category may only be used in Cost Center Accounting (CO-OM-CCA) with the percentage method of accrual calculation. You can post directly in Financial Accounting to register when actual costs are incurred. The system uses this cost element category to post accrued costs in Cost Center Accounting.
If you do not want to consider actual costs (for example, additional costs), you can create this category of cost elements exclusively in Controlling. You define the account in the chart of accounts, but you do not need to create the account as a G/L account in Financial Accounting.
04: Accrual cost element / target=actual method
This cost element category may be used only in the target=actual method of accrual calculation with Cost Center Accounting. You can post the cost directly from Financial Accounting to register when actual costs are incurred. The system uses this cost element category to post accrued costs in Cost Center Accounting.
If you do not want to consider actual costs (for example, additional costs), you can create this category of cost elements exclusively in Controlling. You define the account in the chart of accounts, but you do not need to create the account as a G/L account in Financial Accounting.
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.
12: Sales deduction
Cost elements of this category are used to post sales deductions. Sales deductions (reductions, adjustments, corrections) are adjustment or deduction postings of revenues, such as discounts and rebates. Certain revenues, such as freight charged separately in the invoice, surcharges for small quantities or special orders, are not classified as sales deductions. Such value items are defined as revenue elements.
The account assignment options for cost elements of this category are the same as for cost element category 11 (revenue elements). Values on cost centers are displayed statistically only (as for revenues).
22: External settlement
Cost elements of this category are used to settle order, project, or cost object costs to objects outside of Controlling. CO external objects can be, for example, assets (AM), materials (MM) or G/L accounts (FI). The system always creates an accounting document when you settle to external objects.
You cannot use this cost element category for settlement to objects within Controlling (such as cost centers, orders, or projects). Use secondary cost element category 21 for internal settlement. In contrast to settlement to CO-external objects, no accounting documents are generated by the system for settlement to CO internal objects as the value flow occurs exclusively within CO.
90: Cost element for balance sheet accounts in Financial Accounting
Cost elements of this category are generated automatically when you create cost elements in Controlling that have asset reconciliation accounts, that is, special balance sheet accounts, as corresponding general ledger accounts in Financial Accounting.
You cannot change this cost element category in CO master data maintenance.
Pls revert back for further explanation....
Srikanth Munnaluri
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