Monday, 10 August 2015

Simple Finance - The Convergence of the GL Account and the Cost Element

In this post we will look at the convergence of long standing pieces SAP ERP finance master data, the GL Account and the Cost Element. As anyone that has worked with SAP CO in the past knows the cost element is key to the controlling side of SAP. It in an object that allows you to identify the type of activities that can be done within controlling with that account. They are generally divided into Primary and Secondary cost elements.

  • Primary cost elements have an associated GL account and are generally expense or revenue accounts.
  • Secondary cost elements exist only in CO and are used for internal settlements, assessments, and allocations.

When creating a new revenue or expense account in the GL you have to create a corresponding cost element in CO and typically all you were doing was selecting a Cost Element Category.

With the Simple Finance Add-on 2.0 (now called On Prem 1503) the traditional cost element create, change and display transactions are gone. The functions have been combined in FS00 - Manage G/L Account Centrally. This greatly simplifies the act of creating a new account and eliminated the need to maintain separate masters.
On the Type/Description screen there is a new field called account type. If you select either "Primary Costs or Revenue" or "Secondary Costs" a new field will appear on the Control Data tab for you to enter the Cost element type.

Primary Cost Example:

SAP ERP Finance

SAP FICO Certifications

Secondary Cost Example:

SAP FICO Finance

SAP FICO, SAP FICO Certifications, SAP FICO Material

I think this is a good step forward in simplifying the SAP finance master data and driving the convergence of FI and CO.

Source: scn.sap.com

1 comment:



  1. SAP MM Training Chennai, furnish the best training with Real-time projects. We configured the course as for the Industrial demands. We offers long-term support.
    sap mm training in chennai

    ReplyDelete