Primary Cost and Secondary costs

[Former Member]

Hi Experts,

Please explain me the concept of Primary cost element and secondary cost element. Give me some examples on these topics. I am new to SAP. Please explain in detail.

Thanks

Best Wishes,

Priyanka

[former_member525035]

HI,

As Giridhar mentioned, the Primary cost elements are nothing but your GL accounts, in CO it is called as Primary cost elemtns.

Most of these will have 1:1 relation ship in FI and CO.

The Secondary cost elements are use in CO only for cost allowcation

Vara

[Former Member]

HI,

Primary cost elements are those wherein the values flows from FI. All the General Ledger values which flow into controlling are called as Primary Cost Elements. You can consider all the expense GL accounts in FI as Primary Cost elments in controlling.

Secondary cost elements are created exclusively in CO for internal cost flows. They do not have corresponding GL accounts in FI. They are limited to CO only.

Thanks,

Giridhar