Cost Element Master in SAP

Cost Element Master In SAP

Cost Element Master in SAP

Primary / Revenue Cost element :

Primary / Revenue Cost Element is a carrier for transmitting cost or revenue respectively from FI to CO module. Items in a chart of accounts that are relevant to cost or revenue are referred to as either Primary or Revenue Cost element in controlling.

Secondary Cost element :

Secondary Cost Element is a cost element that is used to allocate costs for internal activities, overhead cost and assessment.  Secondary cost elements do not correspond to any G/L account in Financial Accounting. They are used only in Controlling and consequently cannot be defined in FI as an account. Cost element category determines which cost elements can be used for which business transactions.

Following are the primary cost element categories.

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