Secondary cost elements are posted exclusively in CO, and are not contained in the FI General Ledger. Secondary cost elements are like factory Overheads, Administration Overheads, Power, Diesel Oil, gas etc.
The cost element categories used are Internal settlements (category 43), order/project analysis (category 31), Overhead Rates (category 41), Assessments (category 42), Overhead Rates (category 41) Internal activity allocation (category 43), project-related incoming orders sales (Category 50)
SAP Menu Path :- Accounting > Controlling > Cost element accounting > Mater data > Cost element > Individual processing > Create secondary
Transaction code : – KA06
Step 1 :- Enter transaction code KA06 and press enter
Enter controlling area and press enter
Step 2 : – Update the following information and press enter
Enter Secondary cost element in the cost element field
Enter valid period from to end period of the cost element
Step 3 : – In next screen update following data
Name :– Enter the name of the cost element
Description :– Enter the description of cost element
CElem category : – Select item category for the cost elements. It mainly controls category of cost elements
Click on save icon or ctrl+s to save the configured secondary cost elements.