Allocation Cost Element

The allocation cost element is a secondary cost element, under which the activity type or business process is allocated. The allocation cost element is the central characteristic used in all CO postings. It is therefore also an important criterion for reporting – for example, many reports are structured according to the posted cost elements.

The allocation cost element must have been created in the cost element master data as a secondary cost element of category 43 “Allocate activities/processes”.

If you like this post, you may as well like these too:

1. Primary Cost element and Secondary Cost Element Every Profit and Loss GL account that needs to be controlled has to be defined as a cost element in SAP. Just as in FI General Ledger Accounts exist, in...
2. Cost Element and Cost Center Group Cost element group is nothing but a group of cost elements which help one to track and control cost more effectively. You can make as many number of cost element...
3. Allocation Run (ARUN) – What is it? Sophisticated rule based tool to improve customer service and insure you only deliver according to business or customer rules. Allocate (reserve) unrestricted stock to sales orders. Allocate (reserve) future receipts...
4. What is the Difference between Domain and Data Element A Domain describes the value range of a field and is assigned to a data element. All fields that use the data element will have the value range of the...