CO CEL

Cost Element Accounting  is the area of cost accounting where we track and structure the costs incurred during a settlement period. It is thus not an accounting system as such, but rather a detailed recording of data that forms the basis for cost accounting.

Integration

In an integrated accounting system such as the SAP system, we do not need to enter cost data separately. This is because each business transaction that involves costs updates the CO component with detailed information on the cost element and on the account assignment object itself. Each consumption transaction in Material Management (MM), each billing in Sales and Distribution (SD) (= revenue), and each external transaction for invoice verification flows directly through the G/L Account (= cost element) to the corresponding account assignment object.

Features

You can restrict the entry of cost data to part of the valuation differences and additional costs. While you can transfer depreciation costs from Asset Accounting for the depreciation of fixed assets, for example, you must use accrual calculation in cost accounting for management income.

Cost accounting in the system also has the task of identifying the costs incurred in subareas of the company and tracing the cost flows. The system provides complete information on the costs for all types of account assignment objects (such as cost centers, orders, and projects).

For cross-company-code or cross-business-area cost accounting, the cost flow in Controlling may require reconciliation between internal and external accounting. The necessary reconciliation is also one of the tasks of Cost and Revenue Element Accounting.