Create Primary/Secondary Cost Elements

Create Primary Cost Elements

From the SAP Easy Access Menu: Accounting è Controlling è Cost Element Accounting è Master Data è Cost Element è Individual processingè Create primary

Enter the account # 700000 Labor Expense into the Cost Element field, and click enter.

If you have not created this G/L account previously, you will need to at this point. See the accounts and descriptions below for a list of accounts needed to create the primary cost elements.


Enter 1 into the Cost Element category field

Then click Save

Repeat the above process for the following Cost Element (Account #) entering the appropriate Cost element category numbers for the appropriate Account #

Cost Element

(Account #)        Description                Cost element category

720000        Raw Material Expense         1

720100        Finished Goods Expense         1

720200        Trading Goods Expense         1

740000        Supplies         1

750000     Utilities Expense             1

751000        Production Order Settlement         22

780000        Rent Expense                 1

781000        Misc Expense                 1

Create Secondary Cost Elements

From the SAP Easy Access Menu: Accounting è Controlling è Cost Element Accounting è Master Data è Cost Element è Individual processingè Create secondary


From here you will be at the following screen. Enter the following Cost Element numbers with the corresponding Cost element category numbers clicking save after creating each Cost element. Enter a validation date of 01/01/2003 to 12/31/9999.

Note: As mentioned in the introduction to this section, the secondary cost elements are used only for internal recordkeeping, and therefore should NOT have corresponding G/L accounts!

Cost element            Description            Cost element category

800000     Labor                43 (Internal Activity)

800100         Assessed Costs 42 (Assessement)

800200         Internal Order Settlement 21 (Internal Settlement)

800300 Production Order Settlement 21 (Internal Settlement)

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