Creation of Primary Cost Element in SAP ECC – KA01

Creation of Primary Cost Element in SAP ECC – KA01.

Primary cost element: It 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 how to create Primary cost element in SAP ECC version.

There are actually 2 possible ways:

• We can use T code: FS00 by using the GL account and then it will redirect to T code: KA01.
• We can also create a Primary cost element in T code: KA01.

Note: Once a G/L account is converted to a cost element, it cannot be changed back in the future.

First way using T code: FS00

Just select the GL account what you want to convert it to Cost element and click on “Edit cost element”.

Now it will redirect to the T code: KA01.

Second way, Creation of Primary Cost Element using T code: KA01

Popup will be appeared, give controlling area and click on continue button.

Now give the Cost element, valid from and to, and then click on Master data button.

Give cost element name and description.

Now cost element Category (select as per your requirement).

• For Cost Center we use Primary costs category
• For Profit Center we use Revenue category

Click on save button.

Cost element has been saved.

Similar Content you may like:

• Cost Element in SAP ECC
  • How to Create Primary Cost Element in SAP ECC: Click here
  • How to Create Secondary Cost Element in SAP ECC: Click here
  • How to Assign Cost Element to Cost Center in SAP ECC: Click here
• Cost Element in SAP S4 HANA
  • Creation of Primary Cost Element GL in S4 Hana: Click here
  • Creation of Secondary Cost Element GL in S4 Hana: Click here
  • How to Assign Cost Element to Cost Object in SAP S4 HANA: 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

Creation of Primary Cost Element in SAP ECC – KA01