Flya Kite FI CO Chapter

Revenue accounts when clearing open items clearing

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Flya Kite 35 Controlling CO Where the company “really” finds Where out what is going on! out Quarles: Flya Kite Cost Element Accounting Which costs are incurred ? Product related costs (Direct , traceable costs) Material Labor Product Cost Accounting What for? Product Product Quarles: Flya Kite Overhead costs (Indirect costs) Admin wages Depreciation Interest Cost Center Accounting Where are the costs incurred? Purchasing Manufacturing Administration Sales 37 Cost Elements CO FI General ledger accounts P & L accts Primary cost elements Secondary cost elements Quarles: Flya Kite Bal. sheet accts Expense accts Revenue accts 38 Primary Cost Elements A way to identify which type of cost Salaries, utilities, selling expenses x Cost that arise from consumption of goods/services from outside of the enterprise x Must be created in the GL chart of accounts in FI x Each posting to a cost element must be assigned either to a cost center or an order x Quarles: Flya Kite 39 Secondary Cost Elements x x x x Used exclusively in CO for allocations and settlements x Internal cost allocations Created and exist ONLY in CO x Cannot exist in FI The internal value flows such as allocations and overhead calculations x Secondary cost elements are allocated to cost objects within CO Represent activity values produced in internal cost allocations Quarles: Flya Kite 40 Cost Centers and Cost Elements Closely linked in SAP x Each posting to a cost element is assigned either to a cost center or an...
View Full Document

Ask a homework question - tutors are online