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    Cost Element Accounting SAP

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    Elektroculture
    The document discusses cost element accounting in SAP. Cost element accounting deals with collecting and summarizing costs within controlling and posting to reconciliation ledger accounts. Primary cost elements link to SAP financial accounting expense accounts, while secondary cost elements describe internal cost flows within controlling like allocations and overhead calculations. Configuring cost element accounting in SAP involves creating primary and secondary cost elements, cost element groups, and reconciling cost elements with financial accounts.

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    Cost Element Accounting SAP

    Uploaded by

    Elektroculture
    365 views3 pages
    The document discusses cost element accounting in SAP. Cost element accounting deals with collecting and summarizing costs within controlling and posting to reconciliation ledger accounts. Primary cost elements link to SAP financial accounting expense accounts, while secondary cost elements describe internal cost flows within controlling like allocations and overhead calculations. Configuring cost element accounting in SAP involves creating primary and secondary cost elements, cost element groups, and reconciling cost elements with financial accounts.

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    Cost Element Accounting SAP

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    The document discusses cost element accounting in SAP. Cost element accounting deals with collecting and summarizing costs within controlling and posting to reconciliation ledger accounts. Primary cost elements link to SAP financial accounting expense accounts, while secondary cost elements describe internal cost flows within controlling like allocations and overhead calculations. Configuring cost element accounting in SAP involves creating primary and secondary cost elements, cost element groups, and reconciling cost elements with financial accounts.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    365 views3 pages

    Cost Element Accounting SAP

    Uploaded by

    Elektroculture
    The document discusses cost element accounting in SAP. Cost element accounting deals with collecting and summarizing costs within controlling and posting to reconciliation ledger accounts. Primary cost elements link to SAP financial accounting expense accounts, while secondary cost elements describe internal cost flows within controlling like allocations and overhead calculations. Configuring cost element accounting in SAP involves creating primary and secondary cost elements, cost element groups, and reconciling cost elements with financial accounts.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    The key takeaways are that cost element accounting in SAP deals with collecting and summarizing costs within controlling and posting to reconciliation ledger accounts. Cost elements are items in the chart of accounts used to record values assigned to consumption of production factors like raw materials and utilities. There are primary and secondary cost elements.

    Cost elements are items in the chart of accounts used in controlling to record values assigned to consumption of production factors. There are primary and secondary cost elements. Primary cost elements describe costs that occur outside of controlling and link to FI expense accounts. Secondary cost elements describe costs that occur only within controlling like allocations and overhead cost calculations.

    The main configuration steps of cost element accounting in SAP involve maintaining cost element master data and information, creating primary and secondary cost elements, creating cost element groups, setting up CO/FI reconciliation in company code currency, and generating cost element master data reports.

    What is Cost Element Accounting in SAP | SAP CO-CEL

    What is SAP Cost element accounting

    In SAP, cost element accounting (CO-OM-CEL) deals with the collection of costs and summarizes costs within
    controlling and posts to reconciliation ledger account. For every profit & loss type G/L account type,
    corresponding cost elements are to be created in SAP R/3 system.

    What are cost elements?

    Cost element is an item in the chart of accounts, which is used in controlling area to record the values assigned
    consumption of production factors like raw material, utilities, etc. cost elements are divided in to two types i.e.

    1. Primary Cost / Revenue Elements


    2. Secondary Cost Elements

    Primary Cost Elements: –

    Primary cost elements describes the costs that occurs outside of controlling. It links to SAP financial
    accounting (FI) expenses account (corresponding to G/L account required for costs). When you are creating
    new primary cost elements, the SAP check if a corresponding accounts are available in SAP Financial
    accounting.

    Cost Element Categories: – You need to assign a particular cost element category when you are
    implementing cost element accounting in SAP.

    01 – Primary costs / cost reducing revenues


    11 – Revenues
    12 – Sales deductions

    Secondary Cost Elements

    It describes the costs flows that occurs only within controlling like allocations, overhead cost calculations, etc.
    No link to SAP FI expense accounts.

    Secondary Cost element category: – Similarly you need to assign a cost element category when you are
    creating secondary cost elements. Some of the important secondary cost element category are

    01 – Internal Settlements
    31 – Order/ Project results analysis
    41 – Overhead
    42 – Assessment
    43 – Internal activity allocation

    SAP Cost Element Accounting (CO-CEL) Configuration


    The primary configuration of cost element accounting in SAP involve maintenance of cost element master data
    and information system.

    The important configuration steps of SAP CO-CEL are

    Creation of primary cost elements


    Creation of secondary cost elements
    Creation of cost element group
    SAP CO/FI reconciliation in company code currency
    Cost element master data reports.

    Also read: what is cost center accounting in SAP.


    SAP CO

    ⊩ SAP CO Tutorial

    Basic SAP CO Settings

    ⊩ Maintain controlling area

    ⊩ Define number range interval for SAP co documents

    ⊩ Maintain Versions

    SAP CO Cost Center Accounting

    ⊩ What is SAP Cost center accounting

    ⊩ Create Cost center

    ⊩ What is cost element accounting

    ⊩ Create primart cost elements

    ⊩ Create cost element group

    ⊩ Create secondary cost elements in SAP

    ⊩ Activate cost center accounting

    ⊩ Define cost center categories

    ⊩ Define cost center standard hierarchy

    SAP CO Profit Center Accounting

    ⊩ Create dummy profit center

    ⊩ Define profit center group

    ⊩ Maintain Profit center standard hierarchy

    SAP CO cost element Accounting

    SAP CO Internal Orders

    SAP CO Profitability Analysis

    SAP CO Reports, Tables

    SAP TCodes

    ⊩ SAP TCodes

    ⊩ SAP CO TCodes

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