Entering content frameFunction documentation Entering Primary Costs

Use

The primary costs are transferred directly from the components Financial Accounting (FI), Asset Accounting (FI-AA), and Materials Management (MM) and collected on cost centers. This means that when you create documents in any of these components, the system enters the account assignment object in CO ( cost centers or internal orders). The costs can then be displayed immediately on this object. For more information on account assignment for Controlling objects, see Structure link Account Assignment for Controlling Objects.

The cost center direct costs are collected on cost centers, which settle their costs using direct internal activity allocation.

Cost center overhead costs are entered on the cost centers that further allocate their costs using periodic allocation (see: Structure link Periodic Allocations). These methods allocate costs according to user-defined tracing factors. The costs are usually collected on cost centers and assigned, distributed or reposted at the end of the period.

Note

The SAP R/3 System does not automatically distinguish between cost center direct costs and overhead costs. The user determines the cost category based on how the posted data is to be handled.

Example

Telephone costs are not entered directly on each individual cost center, but are posted to a collection cost center. At the end of each period, these costs are apportioned according to given keys (tracing factors) such as, telephone units per cost center). You can specify whether the original cost element (primary cost element) is to be retained, or whether the costs are to be combined under one or more assessment cost elements (secondary cost elements).

Two documents are created when you process primary costs.

The line items are summarized according to the criteria cost element/controlling object (cost center/internal order) are stored by the system as totals records.

The primary data is transferred using a central interface program. For more information, see Structure link Interfaces to Other R/3 Components.

 

 

 

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