Cost Elements describe the origin of costs. Cost element classifies the organization valuated consumption of production factors within a controlling area.
Primary Cost Elements:
These arise through the consumption of productions factors that are sourced externally. Primary cost elements are used for direct posting and must be accompanied in GL a/c’s in FI.
T-code - KA02.
The categories are follows:
1) General primary cost element, 03 -> Imputed cost element percentage method 4 -> Imputed cost element, target = Actual Method, 11-> Revenue elements, & 12 -> Sales deductions.
Secondary Cost Elements:
Cost elements arise through the consumption of production factor's that are provided internally i.e., by enterprise itself. Secondary cost elements are used strictly for internal controlling posting like assessments and settlements.
T-code - KA06
Category: 12 -> Internal settlements, 31 -> Result analyses, 41 -> Overhead's, 42 -> assessments etc. Cost Element Group -> KAH1
Cost Center's
Cost Center’s are organizational unit within a controlling area that represents a defined location of cost incurrence. The definition can be based on 1) Functional Requirement, 2) Allocation criteria, 3) Physical location and 4) Responsibilities for cost.
Change Cost center hierarchy - OKEON
Creation of Cost Center
- KS01
Distribution
Distribution are created to transfer primary costs from a sender cost center to receiving controlling objects. Distribution is primary cost elements.
Define Distribution - KSV1
Execute “”
- KSV5
Assessment
Assessment are created to transfer
primary and secondary costs from a sender cost center to receiving controlling
objects.
During assessment, the original
cost elements are summarized into assessment cost elements (secondary cost
element, category=42).
Define Assessment -
KSU1
Execute Assessment - KSU5
Activity Types
Activity types categorizes productions and services activities provided by a cost center to the organization and used for allocating costs for internal activities to the originates of the costs.
Creation of Allocation Cost elements
- KA06
Creating/Maintaining the Activity
types - KL01
Statistical Key Figures
Statistical key figures are used as the basis (tracing factor) on which to make allocations (assessments & distributions) and to analyze structural key figures.
