PRIMARY COST ELEMENT
CATEGORIES:
There are two main types of the primary cost
element categories:
1.
Cost related element: The cost element represents the all Fl expenditure GL accounts except
the WIP and production variance GL accounts
a. 01 (primary cost element): It is used for all expenditure GL accounts other than
work in progress, production variances and sales expenditure related GL accounts
(which is directly involved in the billing, that means those sales expenses GL
accounts directly involved in billing)
work in progress, production variances and sales expenditure related GL accounts
(which is directly involved in the billing, that means those sales expenses GL
accounts directly involved in billing)
b. 12 (sales deductions): It is used for sales expenditure related GL
accounts, that
means those expenditure directly involved in the billing need to create CE with
categoryl2, those sales expenses G/L accounts is linked in the FISD integration
(VKOA settings) The main purpose of the cost element category 12 is only used to
get or update the cost in the profitability analysis module, by using cost element
category 01 we can't transfer from SD to COPA. (The system recognizes the revenue
and associated sales expenditure, i.e. like sales discount, rebate, and sales
commission with respect to the market segment in COPA. Market segment means it
may be a customer, product, customer group, product group, region, SBU or
combination or etc.)
means those expenditure directly involved in the billing need to create CE with
categoryl2, those sales expenses G/L accounts is linked in the FISD integration
(VKOA settings) The main purpose of the cost element category 12 is only used to
get or update the cost in the profitability analysis module, by using cost element
category 01 we can't transfer from SD to COPA. (The system recognizes the revenue
and associated sales expenditure, i.e. like sales discount, rebate, and sales
commission with respect to the market segment in COPA. Market segment means it
may be a customer, product, customer group, product group, region, SBU or
combination or etc.)
c. 22 (external settlement): especially for transferring internal order cost
to the
financial accounting and also internal order/Order to other cost objects. It is used for
transferring the cost from CO to Fl i.e. the cost transferred from the internal order to
the AUC (asset under construction) asset or normal asset or GL accounts. Ex: RD
costs (normally settled to GL account), construction of building (settled to either
AUC or asset). When we want to transfer deferred revenue expenditure (RD
expenditure) which is going to be capitalized as asset and write off for future years
financial accounting and also internal order/Order to other cost objects. It is used for
transferring the cost from CO to Fl i.e. the cost transferred from the internal order to
the AUC (asset under construction) asset or normal asset or GL accounts. Ex: RD
costs (normally settled to GL account), construction of building (settled to either
AUC or asset). When we want to transfer deferred revenue expenditure (RD
expenditure) which is going to be capitalized as asset and write off for future years
2. Revenue
related element: The
revenue element represents all Fl income related GL accounts
a. 11 (revenue element): It is used for all income related GL accounts, or
sales related GL accounts.
