PRIMARY Cost Elements : A Primary cost element is defined as elements for which General Ledger Account G/L exists in Finance Accounting FI.

Common primary cost element includes:

• Personnel COSTS.
• MATERIAL Costs.

Secondary Cost Elements : These elements are maintained in Cost Accounting. To create a secondary cost element, SYSTEM checks account ALREADY exists in Financial Accounting and if an account exists, secondary cost element can’t be created. 

Common examples of secondary cost elements:

• Cost element for Order settlement.

Primary Cost Elements : A Primary cost element is defined as elements for which General Ledger Account G/L exists in Finance Accounting FI.

Common primary cost element includes:

Secondary Cost Elements : These elements are maintained in Cost Accounting. To create a secondary cost element, system checks account already exists in Financial Accounting and if an account exists, secondary cost element can’t be created. 

Common examples of secondary cost elements: