cost center and cost element

[Former Member]

can anyone explain what is cost canter and cost element with real time example?

[sudhir_singh · Accepted solution]

Hi,

pls see the below link:

[BijayKumarBarik]

Hi,

Cost center used to track where cost occur in a company and cost element is carrier of costs for reporting.

For more check the link:

http://www.sap-img.com/financial/difference-between-primary-and-secondary-cost-element.htm

Regards,

Biju K

[former_member188931]

Hi,

what is cost canter and cost element

The cost center is an organizational unit in a controlling area. Cost Center is Area or Location where your Cost is occured like Administration, Production, Finanace etc

Cost Element is a carrier which carry the cost from FI module to CO Module. There is two types of Cost Element 1) Primary Cost Element 2) Secondary Cost Element.

To carry Cost From FI module to Co Module primary cost element is used while to carry cost within Co module secondary cost element is used.

Thanks

Hrishi