Domain: SU Management Accounting

Responsibility area: Maintain Costing Master Data

Table of contents 


Scope

ERP

Frequency

References

KA06 - Create a secondary cost element

Cost element - Master Data

Forms

Attachments

Cost element - Master Data


I receive a request to create a secondary cost element >> I create a secondary cost element >> I maintain cost element hierarchies

1. Objective and Scope

1.1. Objective of this Operation

A secondary cost element represents postings that occur between controlling objects within CO and from CO to COPA. A secondary cost element is essentially an account that exists only in the CO module, not in FI. When costs are moved (e.g., from one cost center to another using an assessment, or from a cost center to a production order), no postings are made in FI. 

The secondary cost element category is 21, 42 or 43

The codification of a secondary cost element depends on the system: 

  • In PF2 = 98xxxxxxxx
  • In WP2 = 99xxxxxx

The creation of new secondary cost elements should be done in very limited cases. Usually it is done in the frame of a project when a new process is set-up and requires the creation of a new cost element. 


Exception

Certain secondary cost elements are designated for Lump Sum invoicing, each with a specific coding structure.

The codification depends on the system and it is related to a specific range:

  • In PF2: 9200000000 until 9200009999
  • In WP2:  if cost element category is 42 (which is most of the times) the range should be : 99422700 until 99422999; if cost element category is 43 the range should be : 99432700 until 99432999


The best way to check the last secondary cost element created is to go to Tcode KA03 >> search in tab "N: Cost element" by 99422* or 99432* in WP2 (or 92* in PF2).

Check the last number between the specific range.


Requests related to this should be initiated by the Intercompany Team.


For more information about this process, please refer to the following link:
Optimic Project and OPTIMIC Master data requirement


1.2. Scope

In PF2 (Controlling Area: CHEF) & WP2 (Controlling Areas: Z006, Z013, Z025, Z026 and Z028)

2. Definitions

See Finance - Glossary

3. Tasks description

3.1. I create the secondary cost element

STEP 1

Start the transaction using the menu path or transaction code KA06

Double-click 


Create cost element: Initial Screen



STEP 2

Enter

  1. the code of the cost element to be created
  2. the validity date (01.01.YYYY)
  3. a reference when applicable. 

Click or 



STEP 3

in the tab "Basic data" 

Enter: 

  1. the name and description of the new cost element

  2. The cost element category

    Rules - Cost element Category



When applicable - in the tab "Indicators"

  1. Tick "Record qty"
  2. Enter a "unit of Measure 

save 

A message displays that the cost element is created

 


As a best practice, in WP2 each secondary cost element should be replicated in the 5 controlling areas (Z006, Z013, Z025, Z026 and Z028).


Once the new cost element is created it must be included in all core cost elements groups (XCS-ALL & ZSOLV). 

In WP2, the new secondary cost elements only need to be included in ONE controlling area (the other controlling areas will be automatically updated).

I maintain cost element hierarchies

3.2. I check the set of accounts where the cost element should be included

Most of the secondary cost elements are created as reference from another already existing in the system.

Therefore, we should check the sets of accounts where the secondary cost element used as reference, is included.


Go to tcode GS03 and then select "Utilities" >>> "Find values in sets"


Select variant "DATA TEAM" and insert the secondary cost element.

After execute.

You should compare the output report of the reference secondary cot element with the one that we have created.


In WP2 :                                                                                                            

                   


In PF2 :

               



 3.3. I communicate that a new secondary cost element has been created

I notify the requester.