Cost Element Accounting

[Former Member]

hi,

What is cost element? How it is define in the system?

Regards,

Sanchita

[Former Member]

thanks

[iklovski]

Hi,

http://help.sap.com/saphelp_erp60/helpdata/en/dd/045134de05a662e10000009b38f83b/frameset.htm

Regards,

Eli

[Former Member]

Dear,

Best to understand cost element is in controlling what general ledger account is in FI.

In trial balance you can identify any expense or revenue by GL account similarly you can identify the cost in cost center, order, profit center by cost element. There are two ways to create cost elements.

1. Automatic creation is done with following transaction.

a. OKB2 - Transfer G/L Acct: Maintain Defaults

b. OKB3 - Batch Input for Cost Elements

c. SM35 - Execute the batch input session

2. Manual creation is done by two transaction

a. KA01 - Primary cost elements ( All expense except few and revenue GL in FI are created as primary cost elements)

b. KA06 - Secondary cost elements. ( Assessment, Indirect activity allocation, result analysis are secondary cost elements)

Regards,

Chintan Joshi.

[Former Member]

Hi,

Cost element corresponds to a cost-relevant item in the chart of accounts.

It can be created by SAP T Code KA01 but for this GL should be created first.

Regards,

Pawan Kumar