What are the different types of Cost elements?

1.	What are the different types of Cost elements?
Answer» 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

Answer»

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

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What are the different types of Cost elements?

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