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Former Member

secondary cost element

Dear Forum,

I would like to get confirmation of my understanding on secodary cost element.

1) secondary cost element cannot be posted by itself. it has to attach to cost object. correct?

2) if I have internal order where cost originally settled from primary cost element and this internal order subsequently need to settle to profit segment,

the sender is the primary cost element. Now IO get debited by primary cost element.

the receiver is the profit segment and the cost element is sce.

In this case, I would like to know to credit the cost out from internal order cost object, i need to use sce to credit and in the profit segment, the sce is debited. correct?

3) may i know is the cost element holding the cost or cost object holding the cost?

Thanks

Rgds

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    Former Member
    Apr 12, 2010 at 06:59 AM

    Hi,

    1: every cost element (no matter of primary or secondary) can only be posted using a real cost object

    2: in the settlement rule / allocation structure if it is flagged "settlement cost element wise" the debit cost element is the credit cost element during settlement. ONly if you use a secondary cost element to settle, the order gets credited using this settlement cost element.

    3: Its the combinatiopn of cost element + cost object that "holds" the costs. Only one of them cannot "hold" any cost.

    Best regards, Christian

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