Cost Element Accounting1
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5/26/2018 CostElementAccounting1-slidepdf.com http://slidepdf.com/reader/full/cost-element-accounting1 1/3 cost element accounting: is nothing cost carrier from one module to another modu le. how the values will flow from fi to co: the values will flow from fi to co throu gh cost element accounting. Fi : when we assign cost element for gl account at the time of posting system wi ll ask the cost object. cost object is nothing but cost collecter. cost object it may be cost center, in ternal order, production order, sales order, wbs element, copa. fi: salaries 100000 5000 rent 100001 4000 cash 400000 cost elements two types Primary cost elements secondary cost e lements all our fi P&l accounts (revenue and expenditure) gl accounts we call in co primary cost elements. which is generated from fi module. we will not create cost elements for some gl accounts like; Work in progress p&l account production variance cogs some times we will not create cost element reconcilation gl accounts . Work in progress and production variance and reconcilation accounts values will flow from co to fi.at the time of production order settlement the wip values and variance values will flow to the fi module. primary cost element category: cost element category is identify nature of the cost. 01: it is used for all fi expenditure gl accounts 03: it is used for irregular expenditure gl account( accural expenditure) (ex: b onus) 11: it is used for all our fi revenue gl accounts 12: it is used for sales related expenditure (sales deductions discounts) 22: it is used for external settlement from co to fi 90: we will assign for b/s items. if you want to maintain budget for balance she et items then we will use 90 category. 22: we will use in internal order. Ex: one building construction is there. what ever expenditure is incurring, that expenditure they will book to the internal order once complete the building they will settle to the auc or main asset. case 1 when we settle from internal order to auc entry like this: auc asset dr internal order cr case2: when we settel from auc to main asset
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Cost Element Accounting
Transcript of Cost Element Accounting1
cost element accounting: is nothing cost carrier from one module to another module.how the values will flow from fi to co: the values will flow from fi to co through cost element accounting.Fi : when we assign cost element for gl account at the time of posting system will ask the cost object.cost object is nothing but cost collecter. cost object it may be cost center, internal order, production order, sales order,wbs element, copa.fi:salaries 100000 5000rent 100001 4000cash 400000cost elements two typesPrimary cost elements secondary cost elementsall our fi P&l accounts (revenue and expenditure)gl accounts we call in co primary cost elements.which is generated from fi module.we will not create cost elements for some gl accountslike; Work in progress p&l accountproduction variancecogs some times we will not create cost elementreconcilation gl accounts .Work in progress and production variance and reconcilationaccounts values will flow from co to fi.at the timeof production order settlement the wip values and variancevalues will flow to the fi module.primary cost element category: cost element categoryis identify nature of the cost.01: it is used for all fi expenditure gl accounts03: it is used for irregular expenditure gl account( accural expenditure) (ex: bonus)11: it is used for all our fi revenue gl accounts12: it is used for sales related expenditure (sales deductions discounts)22: it is used for external settlement from co to fi90: we will assign for b/s items. if you want to maintain budget for balance sheet items then we will use 90 category.22: we will use in internal order.Ex: one building construction is there. what ever expenditure is incurring, that expenditure they will book to the internal orderonce complete the building they will settle to the auc or main asset.case 1 when we settle from internal order to auc entry like this:auc asset drinternal order crcase2: when we settel from auc to main assetmain asset drauc asset crNote:instead of 12 category if we use 01 category what is the impact.if we 01 category the values will not flow to the copa module.the 11 and 12 category values only will flow to the copa.Primary cost elements you can create 3 ways:FS00: you can create primary cost elements.ka01 : you can create primary cost elements.automatic cost element creation:1)maintain default settings:we will give range of gl accounts and cost element category.generan expenditure(gexp) 100000 199999 01sales related exp (sexp) 200000 299999 122) create batch input session: here we will specify the validity period of cost element.3) execute the batch input session: here cost elements are created.Secondary cost elements:we will create in co and we will use in co.31: we will use for wip calculation /to update result analysis key.41: to apply the indirect oh to the product ex: loading and unloading charges are there.that cost we can apply to the productFgx:rmx : 10 qty 100 1000 labor 10 hr 10 100rmy : 15 qty 200 3000 machine 15 hr 10 150power 20 kwh 20 400moh 5% on material cost =4000*5/100 200poh 5% on conversion cost=650*5/100 3542:it is used for assessment. assessment will be used for to allocate the cost from one cost center to another cost center or to allocate thecost from cost center to copa. selling and adminstration exp:43:to apply the direct oh to the product we will use 43 category.direct oh means labormachinepowerFgxlabor 10 hr price we are maintaining in kp26. combination of costcenter and activity type wise we will maintain the pricemachine 15 hrpower 20 kwhWhen we run std cost that time the routing price will pick from kp26.total cost estimates.: std cost estimate : starting of the month we will run ck11n and ck24 invidual material collective materials we can runck40n.plan cost estimate: production order creation time will updateactual cost estimate: whenever we will consume materials and activities will update actual cost at the production order level co11n(pp consultantjob)priliminary cost estimate: in repetive mfg(product cost collecter)sales order cost estimate: make to order scenario we will run sales order costestimatewhenever customer will place the order that time sd user will create the sales order . sales order time only cost estimate we will mark. va02:menubar extras - costing.Copaproduct cost by orderproduct cost by periodproduct cost by sales ordermaterial ledgerinternal orderprofit center along with newgl. leading and non leading ledgers (parallel reporting)document splittingreal time integrationcertification training:Srinivas:Fi (9985465789)
