1. Master data in cost center accounting
Controlling area
S01000
S02000
S04000
S02200
S04200
S02200
S04210
Internal
allocations with
secondary cost
elements
Electricity
Internal
allocations with
secondary cost
elements
cost elements
Primary
S02200
cost elements
Primary
S04220
Water
S02200
Gas
Electricity costs
Direct labor costs
Water costs
Indirect labor costs
Cost elements:
Cost elements document which costs were incurred. If they are indirect costs, they are posted to cost centers.
Cost centers:
Cost centers document, together with the posted costs, where the costs occurred.
Cost center hierarchies:
Cost center hierarchies allow you to plan, allocate, and analyze the costs for areas in the organization.
Energy costs

2. The chart of accounts Cost accounting Chart of account 1 2 3 4 5 6 7 8
Financial accounting
Cost accounts
Financial accounting 1 2 3 4 5 6 7 8 9
Fixed
assets
and
long-
term
capital
Current
assets
and
short-
term
capital
Neutral
expendit-
ures and
revenues
Material
assets
primary
cost
elem.
Transfer
postings of
financial
acctg.
imputed
costs
Distrib.
Second-
ary
cost
elem.
Assess-
ment
Second-
ary
cost
elem.
Direct
alloc.
Order
settlem.
Stocks of
semi-
finished
and
products
Revenues/
Inventory
changes/
internal
services
Transfer
postings
from
financial
acctg
Distrib.
Clos-
ing
Cost accounting
Overhead cost
control
Profit control
The chart of accounts contains all accounts for financial accounting and all cost elememts for cost accounting.
The primary cost elements and revenue elements in cost accounting relate directly to the income statement accounts in financial accounting. Any posting entries can thus be channeled realtime into cost accounting. Secondary cost elements are for cost accounting exclusively and are only maintained in that application.

3. The Cost Element Primary cost elements Material cost elements
Overhead cost elem.
Secondary cost elements
Allocation cost elem.
Assessment cst elem.
Overhead rates
Cost elements for
job order settlements
Revenue elements Revenue
Account
General ledger Sub-ledger accts (G/L) accounts
Inc.statem. accts Bal.sheet accts Material accts
Expense accts Asset accts Accounts for indirect posting Accts receivable e.g. reconcil- iation account A / P accounts Accounts payable Vendor $1, $1,000 Revenue accts Accounts for direct posting Security and e.g. bank acct loan accounts
The expense accounts of financial accounting become primary cost elements in cost accounting. They must first exist as general ledger accounts in financial accounting before you can create the corresponding cost elements in cost accounting.
Primary cost elements must always be assigned to a cost object, such as a cost center.
The secondary are exclusively for internal allocations in cost accounting. They do not have corresponding G/L accounts in financial accounting.
If you wish to report revenues in cost accounting, you must create them as revenue elements in cost accounting, as you do with the primary cost elements.
Revenues must always be assigned to a revenue object, for example a customer order.

4. General ledger account and cost element
Client 006
CAUS chart of accts CAUS chart of accts G / L acct Cost elem
Company code 1000 Controlling area G / L acct Cost elem FI CO
When you define your cost elements, you must distinguish between primary and secondary costs.
You can only create a primary cost element if you have already created a general ledger account for it in financial accounting previously.
Secondary cost elements are used solely in cost accounting and must not exist in financial accounting.

5. Overhead analysis sheet
Cost element groups
Overhead analysis sheet
Personnel costs Raw mat. and aux. supplies
Wage costs Salary costs : : : : : : : : : :
Cost elements can be combined into cost element groups.
These groups are used
to create an overhead allocation sheet
where several cost elements are processed within one transaction, such as cost center planning and periodic allocations

6. The organizational unit cost center
ABC Corp.
S03000
S02000
Logistics
S01100
Manage-
ment
S02100
S02200
S02300
S02400
W.house
Energy
Buildings
Motor pool
1100
Manage-
ment
2110
2210
1100
2110
Incoming
goods insp.
Electricity
Admin.
buildings
2220
1100
2120
Water
W.house
buildings
Incoming
warehouse
2230
1100
2130
Each cost center is assigned to a superior hierarchy area in its master record.
The area represents a group of several cost centers.
You can group areas into superior areas, forming a hierarchy of areas and cost centers (on the lowest level of the hierarchy).
You can have any number of such hierarchies parallel to eachother.
You must designate one hierarchy as the standard hierarchy. All cost centers you create must be assigned to one area in this standard hierarchy. This assures that all cost centers of the controlling area are combined within the standard hierarchy.
Gas
Prod.
buildings
Outgoing warehouse

7. Time-based data fields
Cost center Valid from Jan through Dec
Analysis period Person in charge
Jan Jun Smith
Jul Dec Chan
The master data in cost center accounting is time-dependent.
There are three types of master data:
time-independent fields, such as hierarchy levels, are valid for the entire lifetime of the data and changes apply to the whole lifetime.
year-dependent fields, such as cost center currency, cost element type, are valid for a fiscal year. They cannot be changed during the fiscal year.
day-dependent data fields, such as the blocking indicator, can be changed whenever you wish.

8. Activity types S01000 S04000 Production ABC Corp.
S S04200 Service Production A Repair Production Plumber hours SF I hours
Production Electrician SF II hours