What Is The Difference Between Cost Element And GL Account?

What is the difference between primary and secondary cost element?

Secondary Cost Elements: Secondary cost elements are used exclusively in Controlling (CO) and need not be defined in FI.

It can be used for internal allocation purpose.

The primary Cost Elements are more or less mirror images (copies) of P&L revenue and expense accounts from the financial chart of accounts..

What is the purpose of cost center?

The main function of a cost center is to track expenses. The manager of a cost center is only responsible for keeping costs in line with budget and does not bear any responsibility regarding revenue or investment decisions. Expense segmentation into cost centers allows for greater control and analysis of total costs.

What is GL coding?

A General Ledger Code (GL Code) is a unique shorthand code or number given to each account in the Chart of Accounts within the Finance system. The GL code is what systems like SupportAbility use to categorise revenue data (e.g. invoices) and and attach it to an Account before it is exported for the Finance system.

What is the difference between GL and cost center?

GL accounts are used by finance to monitor costs, revenues, assets and liabilities. … Then whenever you create a purchase order, make sure to add cost center so that you will be able to check the expenses per department.

What is cost element accounting?

Cost Element Accounting is the area of cost accounting where you track and structure the costs incurred during a settlement period. In this case, the cost element represents the link between the account in Financial Accounting (FI) and the cost element in Controlling (CO).

How do you assign a cost element to a GL account in SAP?

Go to Tcode KA01 and create your cost element with the same ID of the GL, be sure from the Cost element catgory. GL must be P&L account. there put from date and select Cost Element Category and save it.