Quick Answer: What Is Secondary Cost Element In SAP?

What is primary and secondary cost element in SAP?

Primary cost elements arise through the consumption of.

production factors that are sourced externally.

Secondary cost elements arise.

through the consumption of production factors that are provided internally.

The Chart of accounts contains all general ledger (GL) accounts belonging to..

What is a secondary cost?

A secondary cost element is essentially an account that exists only in the CO module, not in FI. When costs are moved (e.g., from one cost center to another using an assessment, or from a cost center to a production order), no postings are made to the FI P&L.

How do you create a secondary cost in SAP?

You can create secondary costs elements in SAP controlling by using one of the following navigation method. Path : – Accounting > Controlling > Cost element accounting > Master data > Cost element > Individual processing > Create Secondary. Transaction code : KA06.

How do you maintain cost elements in SAP?

How maintain overhead cost elements in SAPSelect SAP reference IMG.Follow the IMG path and double click on maintain overhead cost elements.Set your controlling area and enter.On the create cost element screen, update the following fields. … In next screen update the following information.Click on save button and save the data.

What is the difference between primary and secondary cost element?

Secondary Cost Elements: Secondary cost elements are used exclusively in Controlling (CO) and need not be defined in FI. It can be used for internal allocation purpose. … The primary Cost Elements are more or less mirror images (copies) of P&L revenue and expense accounts from the financial chart of accounts.

What is the difference between cost element and GL account?

So, what is a GL Account means in General Ledger, Cost Element serves the same purpose in the Controlling Module. Cost Element is like a Cost Ledger Account. Every expense or the costs posted to the GL Accounts, seamlessly the same transaction flows to the corresponding Cost Element.