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”.

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