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. 

Certain secondary cost elements are designated for Lump Sum invoicing, each with a specific coding structure. The codification depends on the system: In PF2 = 92xxxxxxxx In WP2 = 99422xxx Requests related to this should be initiated by the Intercompany Team. For more information about this process, please refer to the following link: [Insert link to ppt about the process]

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 receive the request to create a secondary cost element

3.2. I confirm that the request is made by an authorized requester

3.3. I analyze the information provided in the request and ask validation to PE Costing

A secondary cost element is created in limited cases and must follow the standard rules:

If the need of a new secondary cost element is confirmed, I create a secondary cost element