Answer Posted / hdikc

Cost elements are items that represents expenses or costs in FI and CO that

Primary cost elements are GL accounts created purposely as expense accounts, e.g. Travelling expenses GL account.All or any Profit and Loss GL account are primary cost elements.

Secondary cost elements are those created for internal reporting only, i.e. in Controlling and have no impact in FI. Examples would be; internal settlements, overheads, assessments, etc.

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