Cost Element Categories

Cost element categories classify primary and secondary cost elements. They determine the transactions with which you can use the cost element, such as internal settlement or allocation.

The cost element category determines whether you can post to a cost element directly or indirectly:

Direct posting: You post a fixed amount to an account by specifying the account number. You can post directly to all primary cost elements.
Indirect posting: The account is determined automatically at the time of posting. Indirect posting is only possible for secondary cost elements.

Cost Element Categories for Primary Cost Elements

Category	Name	Description
01	Primary costs/cost-reducing revenues	Cost elements of this category can be debited with all primary postings, for example, in Financial Accounting (FI) or Materials Management (MM).
03	Accrual/deferral per surcharge	This cost element category can only be used with the percentage method of accrual calculation in Cost Center Accounting. You can post directly in Financial Accounting to record actual costs. The system also uses this cost element category to post accrued costs in Cost Center Accounting.
04	Accrual/deferral per debit = actual	This cost element category can only be used with the target=actual method of accrual calculation in Cost Center Accounting. You can post directly in Financial Accounting to record true actual costs. The system also uses this cost element category to post accrued costs in Cost Center Accounting.
11	Revenues	In Controlling, revenues are displayed with a negative sign (–) except in Profitability Analysis (CO-PA) where revenues are displayed with a positive sign (+). Note If you post revenues to cost centers, the values appear as statistical information only. This means that while you can repost revenues for posting adjustments to other cost centers, other allocations are not possible. Revenues are ignored in iterative activity price calculation and are therefore not included in the allocation price of an activity type. End of the note.
12	Sales deduction	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 or 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 settle costs for orders, projects, or cost objects to objects outside of Controlling, such as assets (AM), materials (MM), or G/L accounts (FI). When you settle to external objects, a journal entry is created automatically. You cannot use this cost element category for settlement to objects within Controlling , such as cost centers, orders, or projects. Instead, use secondary cost element category 21 for internal settlement. No journal entries are generated for settlement to CO-internal objects as the value flow occurs exclusively within CO.
90	Cost element for balance sheet accounts in Financial Accounting	When you create an account, cost elements of this category are created automatically if all of the following conditions are true: The account has the G/L account type Balance Sheet Account. The account is a reconciliation account for assets or materials. You selected the checkbox Apply Acct Assignments Statistically in Fixed Asset Acct / Material Acct. Note The checkbox Apply Acct Assignments Statistically in Fixed Asset Acct / Material Acct is only visible if the account is defined in account determination as either of the following: A fixed asset balance sheet account in a depreciation area that manages acquisition and production costs and posts to the general ledger A material account You can check this as follows. For an asset account: In Customizing, choose Financial Accounting (New) Asset Accounting (New) Integration with General Ledger Assign G/L Accounts (transaction AO90). On the Balance Sheet Accounts view, make sure the account is defined as a balance sheet account for acquisition and production costs. In the SAP Easy Access Menu, choose Accounting Financial Accounting General Ledger Master Records G/L Accounts Individual Processing Centrally (transaction FS00). On the Type/Description tab, make sure the G/L account type is Balance Sheet Account and the account group is Fixed asset accounts. On the Control Data tab, make sure the Reconciliation Account for Account Type is set to Assets. For a material account: In Customizing, choose Materials Management Valuation and Account Assignment Account Determination Account Determination Without Wizard Configure Automatic Postings . Choose Goto Account Assignment and make sure the account is entered for the inventory posting procedure. End of the note. If you enter a CO account assignment, it 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.

Cost Element Categories for Secondary Cost Elements

Category	Name	Description
21	Internal settlement	Cost elements of this category are used to settle order or project costs to objects within CO. Such objects include orders, profitability segments, cost centers, and projects.
31	Order/project results analysis	Cost elements of this category are used to save the order or project results analysis data on the relevant order or project.
41	Overhead rates	Cost elements of this category are used to allocate overhead from cost centers to orders based on overhead rates.
42	Assessment	Cost elements of this category are used to allocate costs using the assessment method.
43	Internal activity allocation	Cost elements of this category are used for internal activity allocation and in Activity-Based Costing.
50	Project-related incoming orders: Sales revenue	Cost elements of this category are used for sales revenues from sales orders with incoming orders in the current period of the project-related incoming order.
51	Project-related incoming orders: Other revenues	Cost elements of this category are used for other revenue (such as imputed interest) from sales orders with incoming orders in the current period of the project-related incoming order.
52	Project-related incoming orders: Costs	Cost elements of this category are used for costs from sales orders with incoming orders in the current period of the project-related incoming order.
61	Earned value	Cost elements of this category are used for earned value analysis in Project System.

Note Note

Cost element characteristics depend on the controlling area and the allocation methods used in your organization. The cost element characteristics are maintained at the controlling area level. If you change a setting for a cost element attribute within a company, it affects all companies in the controlling area.

End of the note.

More Information

Cost Elements