CONTROLLING COST ELEMENT PART 2

CREATION OF SECONDARY COST ELEMENT

T.CODE KA06

IN THIS SCREEN WE WILL GIVE ANY NUMBER FOR SECONDARY COST ELEMENT

Path : – Accounting > Controlling > Cost element accounting > Master data > Cost element > Individual

step---1

step---2

here you can your own cost element account number while in primary cost element we took gl account

step---3
here click on celemet category and click on explorer button to check the different secondary cost elem

The following are the important secondary cost element categories are used
we will selet here 21 categories are used for controlling object to anoth

click on save button to save the secondary cost element

create cost element group KAH1

A GROUP OF COST ELEMENT HELPS US TO TRACK THE COST MORE EFFECTIVELY.

YOU CAN MAKE AS MANY COST ELEMNT GROUPS AS YOU NEED BY COMBINING LOGICALLY VARIOUS CO

T.CODE KAH1

AS YOU PUT HERE A 50000 COST ELEMENT GROUP CLCIK ON ENETER

AND GIVE THE NAME OF THE COST ELEMNT GROUP IN THE DESCRIPTION

click on save button

after creation of cost element group now you can assign it to the cost element
click on save button
MENT
Secondary cost elements are used to transfer costs and revenues within the SAP controlling module, used for mostly allocation
and settlements. While creating secondary cost elements in SAP, we need to specify the
secondary cost element category. According to the category, cost elements are used for the
specific purpose for which it is created.

a > Cost element > Individual processing > Create Secondary

t element we took gl account number

Remember that secondary cost elements are used to track internal CO movement
and are not tied to the chart of accounts. Here are some potential uses for second
 cost elements:
>>>> Cost center assessments
>>>>> Internal order settlements
>>> Internal allocation of overhead to maintenance orders
Secondary cost elements are not restricted to a number range, so be aware of the
number you are using.

You need to fill in these fields on the Basic Data tab:

different secondary cost element categories
Name Enter the name of the cost element.
Description Enter a description of the cost element.
CElem Category Enter the category of the cost element. Use th
box or refer to “Cost Element Types” earlier in this chapter for a listing o
entries. Remember that the cost element category limits the account’s u
business transactions, so choose carefully.
Attribute Mix This field is optional. Attributes help to further classi
but they have no control functionality. That is to say, the attributes do n
limit business transactions. Cost element attributes are maintained in th
Functional Area There are numerous companies that are
and will link these cost elements to a specific functional area.
Fill in these options on the Indicators tab:
Record Quantity Select this check box if you want to track qu
currencies, for the cost element.
Unit of Measure If you select Record Quantity, you must provid
with which to track the quantities.
Fill in this option on the Default AcctAssignment tab:
Cost Center or Internal Orders This is used if the cost element w
to a specific cost center and/or internal order for tracking specific costs.
When configuration is complete, save the cost element. Figure 9.12 sho
for the filled-out version for Extreme Sports.
or controlling object to another within th co
NING LOGICALLY VARIOUS COST ELEMENTS.

he cost element
dule, used for mostly allocations

internal CO movements
otential uses for secondary
nge, so be aware of the

he cost element.
ry of the cost element. Use the drop-down
er in this chapter for a listing of possible
category limits the account’s use to specific

ttributes help to further classify cost elements,

at is to say, the attributes do not
attributes are maintained in the IMG.
numerous companies that are using functional areas
ific functional area.

eck box if you want to track quantities, as well as

ord Quantity, you must provide a unit of measure

s is used if the cost element will be defaulted

der for tracking specific costs.
cost element. Figure 9.12 shows the screen