Answer / vasu

interacting with cost accounting department for collecting
the information for tailoring the business into sap.
Maintain controlling area settings.create primary and
secondar y cost elements of different categories such as
31,42,43,41(secondary). define ordertype and enter
settlement profile created. configure profit center settings
and operating concern which meets client reporting
requirements, for doing this first we need to study client
reporting requirements. understand the business process and
which method they are fallowing (MTO or MTS). Based on the
process we need to configure product costing and period end
activities such as O.H calculation,WIP,variance calculation,

please let me know anything left.......

thanks

vasu

Answer / vasu

Hai Reshmi Bal,

primary cost element is nothing but GL accounts, which
carry cost and revenue into controlling. in simple term
those are the intermediatary between fi and co, which
bridges the link.
secondary cost elements purely CO internal use only for
calculate workin progress,variances,over head and also use
for cost assessment between cost objects.
MTO----make to order:
this is individual requirement of customer.order is creted
with reference to the customer order.becoz more than one
order created for the same material.
MTS----make to stock:
this is continues production process.first they will make
stock and sell in the market. this is generally in the
process industry.. ex:- chemical industry......

the same you need to configure in sap......... i hope so
this will clear your doubts....let me come to know if u
need more help in this.....

thanks

Answer / jkk

Controlling

Answer / reshmi bal

thanks a lot vasu..pls let me know that are all cost
centers are parally rela

Answer / pavan. ark

Reshmi Bal / vasu:

great conversation. Vasu u had really explained in
detailed. Thanks alot. if possible could u give ur mail id.
saparkpavan @ hot mail .com

Answer / reshmi bal

sorry my question has discurded..actually i want to know
whether all gl accounts are parally related to every cost
centers...whats is basic diff between primary and secondary
cost center..whts is the full form of MTS & MTO..actually i
am in learning process of CO so if i ask any silly
questions dnt let me down..

regards,
Reshmi

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