Primary cost element

Expenses in FI that are relevant to cost accounting are

recorded in CO using primary cost element.Primary cost
elements can only be created when a G/L expense
account exists. Thus, there is a one-to-one relationship
between primary cost elements and G/L expense
accounts. When an FI posting occurs in a G/L account
for which a primary cost element has been defined, a
valid controlling object (cost center, order, etc.) is
required before posting

Steps for Creation of primary cost element

There is followong path for selecting T- code for primary cost
element creation.

T- Code- KA01

1) Enter the company controlling area and press enter key.

2) Enter the GL code (Expenses and revenue) and valid

period and press enter key.
3) Click on indicators.

4) Optional field.

5) Optional field.

6) To change the primary cost element T- Code- KA02. We

can the fields.
7) To display the primary cost element T- Code- KA03.We can
display details.
8) To delect the primary cost element T- code- KA04.