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Configuring SAP® ERP Financial and Controlling by John Burger, Peter Jones

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Cost Element Types

There are two distinct cost element types within the Controlling module: primary and secondary. In simple terms, primary cost elements can be directly posted to via the posting that occurs in another module, such as a posting to FI or SD, whereas secondary cost elements must be acted upon by another transaction that will determine the cost element for you, therefore posted only within CO. An example of such a transaction is a cost center assessment where, for the ability to track costs at different levels, you choose to charge other cost objects part or all of the original costs. Again, this concept will be further explained as we move through each of the different cost object chapters. Another technical distinction is that ...

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