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

How to create a Secondary 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.

• 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.
• 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.

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

Secondary Cost element GL account created.

Explained: How to create a Secondary 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 Primary 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