Cost Element

All Profit and Loss GL account defined in Finance Chart of account shall be created, as Cost Element
This is in order to avoid Reconciliation of FI and CO module.

Cost Object could be Material, Cost Center, Internal Order, Production Order etc.

Two Types of Cost element

Primary CE - Primary cost elements, which are based on GL accounts.

Secondary CE - Secondary cost elements are used only in CO booking in case of

transfer/allocation/Distribution/Recovery of cost within Controlling.

Path: Accounting -- Controlling -- Cost Element Accounting -- Master Data -- Cost Element -- Individual
Processing -- KA01 -Create Primary

Click on KA01- Create Primary Cost Element

Cost Element 4000000 (Expenses G/L)

Valid From 01.04.2015 to 31.12.9999

Enter

Cost Element Category 1 (Primary costs/cost-reducing revenues)

Enter and Save

Automatic Creation of Primary and Secondary Cost Elements

Path: SPRO -- Controlling -- Cost Element Accounting -- Master Data -- Cost Elements -- Automatic
Creation of Primary and Secondary Cost Elements -- Make Default Settings

Click On Make Default Settings

Chart of Accounts YG01

Enter

Click on New Entries

Account From Account to Cost Element Category

4000001 4000010 1

Enter and SAVE

Create Batch Input Session
Path: SPRO -- Controlling -- Cost Element Accounting -- Master Data -- Cost Elements -- Automatic
Creation of Primary and Secondary Cost Elements -- Create Batch Input Session OKB3

Click On Create Batch Input Session

Controlling Area YG01

Valid From 01.04.2015

Valid to 31.04.2015

Session Name Sriram

Batch Input user SAPUSER

Execute

Execute Batch Input Session

Path: SPRO -- Controlling -- Cost Element Accounting -- Master Data -- Cost Elements -- Automatic
Creation of Primary and Secondary Cost Elements -- Execute Batch Input Session

Click On Execute Batch Input Session

Click On Process Button

Display Errors Only

Click On Process

Click On Exit Batch input Session

Display Cost Element

Path: Accounting -- Controlling -- Cost Element Account -- Master Data -- Cost Element
Accounting -- Individual Processing -- KA03

Click On KA03

Enter

Cost Element Group

Path: Accounting -- Controlling -- Cost Center Accounting -- Master Data -- Cost Element Group --
KAH1 - Create
Click on KAH1

Cost Element Group HYDYG01

Enter

HYDYG01 Hyderabad Cost Element Group

Select HYDYG01

Click On Cost Element

From To

4000000 4000011

Enter and SAVE