How to create a Primary Cost element GL account in S4 Hana

How to create a Primary Cost element GL account in S4 Hana.

Cost Element: It is an organizational element, which helps to carry or integrate the costs or revenues of CO with finance module.

There are two types of Cost elements.

• Primary cost element: Primary cost element will capture the costs from FI postings and can be used to generate the report in CO Controlling module. For instance, Distribution cycle need primary cost element.
• Secondary cost element: This is exclusively used in the CO – Controlling module and are not directly related to FI postings. For instance, Assessment cycle need Secondary cost element.

In this blog, we guide you through the step-by-step process of creating a primary cost element.

Go to T code: FS00.

Click on create icon, Give GL account, company code and click on continue button.

Under Type/Description Tab – Enter the details like GL Account type, Account group, texts.

GL Account type will decide the cost element category to be populated under control data tab.

Control Data Tab – Give the required details like below and but still scroll down.

After that, Give Cost element category (Select based on your requirement).

Then Create/bank/interest Tab – Give the required details and click on save button.

Primary Cost element GL account created.

Explained: How to create a Primary Cost element GL account in S4 Hana.

Other contents you may like in SAP:

• How to Create Controlling Area in SAP: Click here
• Creation of Secondary Cost Element GL in S4 Hana: Click here
• How to Create the Cost Element Group in SAP: Click here
• Creation of Cost Center in SAP: Click here
• Creation of Cost Center Group in SAP: Click here

SAP FICO Configuration topics:

• SAP Finance Enterprise structure: Click here
• SAP Finance GL Accounting: Click here
• SAP Finance Accounts Payable: Click here
• SAP Finance Accounts Receivable: Click here
• SAP Finance Bank Accounting: Click here
• SAP Finance New Asset Accounting: Click here
• How to Create a Controlling area in SAP: Click here
• SAP Controlling – Cost Element Accounting: Click here
• SAP Controlling – Cost Center Accounting: Click here