MISSION 2000 DATE : 12/24/17

CONTROLLING

BUSINESS PROCESS PROCEDURE

XYZ LIMITED Title: Creation of a cost element.
Organisation/Area: Cost element.
File name: Coumce01.doc Solution/Release : R/3 4.6 B
Responsibility:

Trigger : Create a primary cost element-When a new GL Expense Account is

created and you want to consider the same for Costing records.

Business Process Description Overview

Creation of a primary cost element: Primary cost element corresponds to one GL Expense Account
( P & L A/c Type ) in FI. If you want a particular expense to be considered for costing, you have to open
the same as a corresponding cost element. Otherwise, you need not create the cost element.
This transaction is also used to extend the validity period of Cost Element .

Input-Required Fields Field Value /Comments

Cost Element : No. Of the corresponding GL Account.
Valid From : Date from which you want to create this cost element.
Valid To : Date to which you want to keep this cost element valid.
Name : Name of the Cost Element.
Description : Description of Cost Element.
CElem Category : Cost Element Category.
Record Quantity : Whether you want to record the quantity consumed also or not.
Unit of measure : Mention the unit of measure for this cost element.
Default Cost center : Mention the Cost center , if required.
Default Internal Order : Mention the Internal Order , if required.

Output – Results Comments

You will get the message: Cost element has been Cost Element will be created with the same number
created. of corresponding GL Account in FI.

Tips and Tricks:

To extend the validity period of cost element, you have to use the same transaction (ie. Cost Element
Create Primary ) and give the same Cost Element No. and extended validity date by giving the data.
“From date" of the new period as the date next to the “To date” of the previous validity period.

Last change on: Last change by: Version Page 1 of 2

02.07.01 Viswanath
MISSION 2000 DATE : 12/24/17
CONTROLLING
XYZ LIMITED BUSINESS PROCESS PROCEDURE
Title: Creation of a cost element.
Organization/Area: Cost element.
File name: Coumce01.doc Solution/Release : R/3 4.6 B
Responsibility:
PROCEDURAL STEPS
1.1 Access transaction by :

Via Menus Accounting Controlling  Cost Centers

Master DataCost ElementIndividual processingCreate Primary
Via Transaction Code KA01
1.2. On the “Create Primary Cost Element:Initial Screen”,enter information in the field as specified below:

Field Name Description R/O/C User Action and Values Comments

Cost Element : Cost Ele. No R Enter the Corresponding GL Account No.
Valid from : From date R Enter the date from which you want to create
this as a Cost Element.
Valid to : To date R Enter the date upto which you want this Cost
Element to be valid.
1.3. Press Enter or Basic Screen to advance to the next screen.
1.4. . On the “Create primary cost element : Basic Screen “, enter information in the fields as specified in
the below table :
Field Name Description R/O/C User Action and Values Comments

Name R This will be copied automatically from GL Account

by the system.
Description R This will be copied automatically from GL Account
by the system.
Celem Category R Enter 1 since this is a Primary cost element.
Under indicators,
Record Quantity O If you want to record the quantity consumed also,
tick this field. For this , the Unit of measure for this
cost element should be same always.
Unit of measure R If you ticked the Record Quantity field, enter the
Unit of measure.
1.5. If you want to collect this cost on one Cost Center only or One Internal Order only, Click Default account
assignment ( Optional ) and enter the following:

Cost Center : O If you want this cost element to be charged only to

one Cost Center always, you can give the name of
that Cost Center No. here.
Order: O If you want this cost element to be charged only to
one Internal Order always, you can give the name of
that Internal Order No. here.
In this step you define additional automatic account
assignments for cost elements for use in posting to
primary cost elements. This is always the case when
the corresponding posting row is automatically
generated.
Examples for automatically generated postings are
 Discounts, exchange rate differences, and bank
charges in FI
 Price differences in MM.

1.6. Save the document by pressing Save of F11.

Last change on: Last change by: Version Page 2 of 2

02.07.01 Viswanath
MISSION 2000 DATE : 12/24/17
CONTROLLING

XYZ LIMITED BUSINESS PROCESS PROCEDURE

Title: Change cost element.
Organisation/Area : Cost element.
File name: Coumce01.doc Solution/Release : R/3 4.6 B
Responsibility:

Trigger : When you want to change any field in a Primary Cost Element.

Business Process Description Overview

Change a Cost Element : Primary cost element corresponds to one GL Expense Account ( P & L A/c Type
) in FI. If you want to change fields in cost element master, you can make the changes and save it.

Input-Required Fields Field Value /Comments

.
Name : Name of the Cost Element.
Description : Description of Cost Element.
CElem Category : Cost Element Category.
Record Quantity : Whether you want to record the quantity consumed also or not.
Unit of measure : Mention the unit of measure for this cost element.
Default Cost center : Mention the Cost center , if required.
Default Internal Order : Mention the Internal Order , if required.

Output – Results Comments

Message – Cost Element has been changed will Read the message to ensure the completeness.
appear in the bottom.

Tips and Tricks:

You cannot change the cost element category, validity period of a cost element.
You also cannot change the record quantity & UOM if data has already been recorded.

Last change on: Last change by: Version Page 1 of 2

02.07.01 Viswanath
MISSION 2000 DATE : 12/24/17
CONTROLLING
XYZ LIMITED BUSINESS PROCESS PROCEDURE
Title: Change cost element.
Organisation/Area : Cost element
File name: Coumce01. Doc Solution/Release : R/3 4.6 B
Responsibility:

PROCEDURAL STEPS

1.1 Access transaction by :

Via Menus Accounting Controlling  Cost Centers

Master DataCost ElementIndividual processing Change
Via Transaction Code KA02
1.2. On the “Change Cost Element : Intital Screen “, enter information in the fields as specified in
the below table :

Field Name Description R/O/C User Action and Values Comments

Cost Element : Cost Ele. No R Enter the Name of the Cost Element you want to
change.
1.3. Press Enter, F5 or Basic Screen to advance to the next screen.

1.4. . On the “Change Cost Element : Basic Screen “, enter information in the fields you want to change as specified
in the below table :
Field Name Description R/O/C User Action and Values Comments

Name R This will be copied automatically from GL Account

by the system.
Description R This will be copied automatically from GL Account
by the system.
Record Quantity O If record qty. was not active, it can be activated. But
if it is active and data exists, you can’t change this
field.
Unit of measure R If record qty. was not active, it can be activated and
the UOM to be mentioned . But if record qty. is
already active and UOM entered and data exists, then
this field can’t be changed.

1.5. If you want to change/insert the default cost Center or Internal Order, then Press “ Default Account
Assignment “ or F5 to advance to that screen ( Which is Optional )

1.6. On the “Default Account Assignment Screen “, enter information in the fields as specified below:

Cost Center : R
If you want this cost element to be charged only to
one Cost Center always, you can give the name of
that Cost Center No. here.
Order: R If you want this cost element to be charged only to
one Internal Order always, you can give the name of
that Internal Order No. here.
1.7 Save the document by pressing Save or F11.

Last change on: Last change by: Version Page 2 of 2

02.07.01 Viswanath