Costelement Categories
Content
Cost Element Categories
Definition
The cost element categoryhas a technical control function. It determines whether you can post to a cost
element directly or indirectly.
Direct posting means: You post a fixed amount to an account by specifying the account number. You
can post directly to all primary cost elements.
Indirect posting means: The system determines the account automatically at the time of posting You
can not enter the account number with the posting transaction. You can only post indirectly to
secondary cost elements.
Use : The following cost element categories can be used for primary cost elements :
01: Primary cost element
This category of cost element can be debited with all primary postings, for example, in Financial
Accounting (FI) or Materials Management (MM).
03: Accrual cost element / percentage method
This cost element category may only be used in Cost Center Accounting (CO-OM-CCA) with the
percentage method of accrual calculation. You can post directly in Financial Accounting to register
when actual costs are incurred. The system uses this cost element category to post accrued costs in
Cost Center Accounting.
If you do not want to consider actual costs (for example, additional costs), you can create this
category of cost elements exclusively in Controlling. You define the account in the chart of
accounts, but you do not need to create the account as a G/L account in Financial Accounting.
04: Accrual cost element / target=actual method
This cost element category may be used only in the target=actual method of accrual calculation
with Cost Center Accounting. You can post the cost directly from Financial Accounting to register
when actual costs are incurred. The system uses this cost element category to post accrued costs in
Cost Center Accounting.
If you do not want to consider actual costs (for example, additional costs), you can create this
category of cost elements exclusively in Controlling. You define the account in the chart of
accounts, but you do not need to create the account as a G/L account in Financial Accounting.
11: Revenue elements : The cost element category is used to post revenues.
Revenues are displayed in Controlling with a negative sign (-). An exception to this is Profitability
Analysis (CO-PA). In CO-PA revenues are displayed with a positive sign (+).
Caution
If you post revenues to cost centers, the values appear as statistical information only. This means
that you can repost revenues for posting adjustments to other cost centers, but another allocation is
not possible. Revenues are ignored in iterative activity price calculation and are therefore not
included in the allocation price of an activity type.
Note : Before you define a revenue element, check whether the posting is in the form of a
credit memo whose costs you want to take into account. If this is the case, use cost element
category 01 (primary cost elements), not category 11 (revenue elements). These credit memos
appear as negative costs and are processed in the same way as all other cost elements of category
01.
Example: Cost centers
Cost center with revenue posting
Cost center with credit entry
Costs
10,000
Costs
10,000
Revenues
-5,000
Credit memo
-5,000
Cost effective
10,000
Cost effective
5,000
12: Sales deduction
Cost elements of this category are used to post sales deductions. Sales deductions (reductions,
adjustments, corrections) are adjustment or deduction postings of revenues, such as discounts and
rebates. Certain revenues, such as freight charged separately in the invoice, surcharges for small
quantities or special orders, are not classified as sales deductions. Such value items are defined as
revenue elements.
The account assignment options for cost elements of this category are the same as for cost element
category 11 (revenue elements). Values on cost centers are displayed statistically only (as for
revenues).
22: External settlement
Cost elements of this category are used to settleorder, project, or cost object costs to objects outside
of Controlling. CO external objects can be, for example, assets (AM), materials (MM) or G/L
accounts (FI). The system always creates an accounting document when you settle to external
objects.
You cannot use this cost element category for settlement to objects within Controlling (such as cost
centers, orders, or projects). Use secondary cost element category 21 for internal settlement. In
contrast to settlement to CO-external objects, no accounting documents are generated by the system
for settlement to CO internal objects as the value flow occurs exclusively within CO.
90: Cost element for balance sheet accounts in Financial Accounting
Cost elements of this category are generated automatically when you create cost elements in
Controlling that have asset reconciliation accounts, that is, special balance sheet accounts, as
corresponding general ledger accounts in Financial Accounting.
You cannot change this cost element category in CO master data maintenance.
FI does not require CO account assignments of category 90. However, if you do enter a CO account
assignment, this is only updated statistically even for true CO objects.
Cost elements of category 90 enable you to control the costs of an order or project budget during
the acquisition of fixed assets that can be directly capitalized. To achieve this you enter a capital
investment order or work breakdown structure (WBS) element in the appropriate field in the asset
master data. The Asset Management (AM) component ensures that when the asset is acquired, the
order or WBS element is automatically entered in the document.
In Controlling, orders and WBS elements are debited statistically. This statistical debit is checked
with the budget during availability control.
The system does not support other uses of category 90 cost elements at present. You cannot plan
using these cost elements.
The following cost element categories can be used for secondary cost elements :
21: Internal settlement
This cost element category is used to settle (further allocate) order or project costs to Controlling
(CO) internal objects. CO-internal objects are, for example, orders, profitability segments, cost
centers and projects.
You cannot use this cost element category for settlement to CO-external objects (such as fixed
assets, materials, or G/L accounts). Use primary cost element category 22 for external settlement.
31: Order/project results analysis
This cost element category is used to save the order/project results analysis data on the relevant
order/project.
41: Overhead rates
This cost element category is used to further allocate overhead costs using overhead ratesfrom cost
centers to orders.
42: Assessment : This cost element category is used to allocate costs using the assessment
method.
43: Allocation of activities/processes : This cost element category is used during internal
activity allocationand in Activity-Based Costing.
50: Incoming orders: sales revenues
This cost element category is used for sales revenues from sales orders with incoming orders in the
current period of the project-related incoming order.
51: Incoming orders: other revenues
This cost element category is used for other revenues, such as imputed interest, from sales orders
with incoming orders in the current period of the project-related incoming order.
52: Incoming orders: costs : This cost element category is used for costs from sales orders
with incoming orders in the current period of the project-related incoming order.
61: Earned values : This cost element category is used for the earned values from the earned
value analysis in Project System.
Definition
The cost element categoryhas a technical control function. It determines whether you can post to a cost
element directly or indirectly.
Direct posting means: You post a fixed amount to an account by specifying the account number. You
can post directly to all primary cost elements.
Indirect posting means: The system determines the account automatically at the time of posting You
can not enter the account number with the posting transaction. You can only post indirectly to
secondary cost elements.
Use : The following cost element categories can be used for primary cost elements :
01: Primary cost element
This category of cost element can be debited with all primary postings, for example, in Financial
Accounting (FI) or Materials Management (MM).
03: Accrual cost element / percentage method
This cost element category may only be used in Cost Center Accounting (CO-OM-CCA) with the
percentage method of accrual calculation. You can post directly in Financial Accounting to register
when actual costs are incurred. The system uses this cost element category to post accrued costs in
Cost Center Accounting.
If you do not want to consider actual costs (for example, additional costs), you can create this
category of cost elements exclusively in Controlling. You define the account in the chart of
accounts, but you do not need to create the account as a G/L account in Financial Accounting.
04: Accrual cost element / target=actual method
This cost element category may be used only in the target=actual method of accrual calculation
with Cost Center Accounting. You can post the cost directly from Financial Accounting to register
when actual costs are incurred. The system uses this cost element category to post accrued costs in
Cost Center Accounting.
If you do not want to consider actual costs (for example, additional costs), you can create this
category of cost elements exclusively in Controlling. You define the account in the chart of
accounts, but you do not need to create the account as a G/L account in Financial Accounting.
11: Revenue elements : The cost element category is used to post revenues.
Revenues are displayed in Controlling with a negative sign (-). An exception to this is Profitability
Analysis (CO-PA). In CO-PA revenues are displayed with a positive sign (+).
Caution
If you post revenues to cost centers, the values appear as statistical information only. This means
that you can repost revenues for posting adjustments to other cost centers, but another allocation is
not possible. Revenues are ignored in iterative activity price calculation and are therefore not
included in the allocation price of an activity type.
Note : Before you define a revenue element, check whether the posting is in the form of a
credit memo whose costs you want to take into account. If this is the case, use cost element
category 01 (primary cost elements), not category 11 (revenue elements). These credit memos
appear as negative costs and are processed in the same way as all other cost elements of category
01.
Example: Cost centers
Cost center with revenue posting
Cost center with credit entry
Costs
10,000
Costs
10,000
Revenues
-5,000
Credit memo
-5,000
Cost effective
10,000
Cost effective
5,000
12: Sales deduction
Cost elements of this category are used to post sales deductions. Sales deductions (reductions,
adjustments, corrections) are adjustment or deduction postings of revenues, such as discounts and
rebates. Certain revenues, such as freight charged separately in the invoice, surcharges for small
quantities or special orders, are not classified as sales deductions. Such value items are defined as
revenue elements.
The account assignment options for cost elements of this category are the same as for cost element
category 11 (revenue elements). Values on cost centers are displayed statistically only (as for
revenues).
22: External settlement
Cost elements of this category are used to settleorder, project, or cost object costs to objects outside
of Controlling. CO external objects can be, for example, assets (AM), materials (MM) or G/L
accounts (FI). The system always creates an accounting document when you settle to external
objects.
You cannot use this cost element category for settlement to objects within Controlling (such as cost
centers, orders, or projects). Use secondary cost element category 21 for internal settlement. In
contrast to settlement to CO-external objects, no accounting documents are generated by the system
for settlement to CO internal objects as the value flow occurs exclusively within CO.
90: Cost element for balance sheet accounts in Financial Accounting
Cost elements of this category are generated automatically when you create cost elements in
Controlling that have asset reconciliation accounts, that is, special balance sheet accounts, as
corresponding general ledger accounts in Financial Accounting.
You cannot change this cost element category in CO master data maintenance.
FI does not require CO account assignments of category 90. However, if you do enter a CO account
assignment, this is only updated statistically even for true CO objects.
Cost elements of category 90 enable you to control the costs of an order or project budget during
the acquisition of fixed assets that can be directly capitalized. To achieve this you enter a capital
investment order or work breakdown structure (WBS) element in the appropriate field in the asset
master data. The Asset Management (AM) component ensures that when the asset is acquired, the
order or WBS element is automatically entered in the document.
In Controlling, orders and WBS elements are debited statistically. This statistical debit is checked
with the budget during availability control.
The system does not support other uses of category 90 cost elements at present. You cannot plan
using these cost elements.
The following cost element categories can be used for secondary cost elements :
21: Internal settlement
This cost element category is used to settle (further allocate) order or project costs to Controlling
(CO) internal objects. CO-internal objects are, for example, orders, profitability segments, cost
centers and projects.
You cannot use this cost element category for settlement to CO-external objects (such as fixed
assets, materials, or G/L accounts). Use primary cost element category 22 for external settlement.
31: Order/project results analysis
This cost element category is used to save the order/project results analysis data on the relevant
order/project.
41: Overhead rates
This cost element category is used to further allocate overhead costs using overhead ratesfrom cost
centers to orders.
42: Assessment : This cost element category is used to allocate costs using the assessment
method.
43: Allocation of activities/processes : This cost element category is used during internal
activity allocationand in Activity-Based Costing.
50: Incoming orders: sales revenues
This cost element category is used for sales revenues from sales orders with incoming orders in the
current period of the project-related incoming order.
51: Incoming orders: other revenues
This cost element category is used for other revenues, such as imputed interest, from sales orders
with incoming orders in the current period of the project-related incoming order.
52: Incoming orders: costs : This cost element category is used for costs from sales orders
with incoming orders in the current period of the project-related incoming order.
61: Earned values : This cost element category is used for the earned values from the earned
value analysis in Project System.
