Cost Elements
Use
Every item that is relevant to costing is assigned to a cost element. For example, material costs (category M) are assigned to primary cost elements, while production costs (category E) and overhead costs (category G, P or X) are assigned to secondary cost elements.
Item categories T (text) and O (formulas) in unit costing (that is, material costing without quantity structure and base planning objects) are not relevant to costing and do not, therefore, have to be assigned to cost elements.
Features
Item Category |
Data Used by System to Determine Cost Element |
M (materials) |
Valuation class in the accounting view of the material master record |
E (internal activities) |
Entry in the master data of the activity type |
X and P (business processes) |
Entry in the master data of the business process |
G (overhead) |
Credit key in the costing sheet |
V (variable items) |
Your manual entry Variable items are only available in unit costing. |
F (externally processed operations) |
Entry in the detail screen of the operation |
See also:
For more information about cost elements, see CO Cost Center Accounting.