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How to create Secondary Cost Elements – KA06

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)

Note :- Secondary cost elements are not linked to any G/L accounts, COA, where as primary cost elements are links to general ledger accounts in SAP

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

Secondary Cost Elements - T code ka06

Enter controlling area and press enter

Secondary Cost Elements - Controlling area

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

Secondary Cost Elements

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

create secondary cost elements

Click on save icon or ctrl+s to save the configured secondary cost elements.