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SAP CO PROJECT Details and Steps in PDF

Updated Jul 25, 2018


To update CO records / sub modules cost elements are required There are 2 types of cost elements

1. Primary cost element

2 Secondary cost elements

A)Primary cost elements are nothing but GL expenditure accounts
Eg: 400100 salaries a/c
Created in Fi to be created as cost element in co to update Co records

A)Secondary cost elements are other than general ledger accounts

B) Posting to primary cost elements are possiable

B) Postings to secondary cost elements are not possible. They are used to allocations / Settlements

Eg:cost center dept C dept A dept B Service dept production dept



Salries 200000
Wages 300000
Power 100000


We allocate dept C cost to dept A and dept B by using secondary cost elements



When we create a cost element we have to specify to which category the cost element belongs cost element categories are given by SAP along with package 2 types of cost element categories.


  • Primary cost / costs redacting revenues. This used for expenditure accounts
  • Accrual / Deferral per surcharge: This is used for month end provisions only in CO

Revenues: This is used for income accounts

Sales Deduction: This is used for expenditure accounts like Trade discount / sales commission where CO-Profitability analysis module is implemented

External settlement(Settlement from CO-FI): This is used for allocation of internal order costs to GL accounts / assets (from Co to Fi).


  • Internal settlement (Settlement from CO to CO) This is used for allocation of internal costs to cost centers. (Co to Co)
  • Order/ Project Results analysis: This is used for work in process calculations is product costing.
  • Overheads rates: This is used for calculation of raw material overhead rate / Production overhead rate in product costing.
  • Assessment: This is used for allocation of primary cost element posing and secondary cost allocations from one cost center to other cost centers.
  • Internal Activity Allocation: This is used for calculation of activity type’s rate in product costing in production cost.

Eg: Machine hours rate / labor hour rate


This is used to view department wise costs we use cost center accounting. In organizations there will be no.of cost centers

Eg: Production cost centers / service / administration cost centers
When we create cost centers we have to specify the cost center category i.e. whether it is a production dept or service dept.

When we want to see no. of cost centers data at a time we create cost center group and assign the respective cost centers In the month end we allocate costs from one cost center to other cost centers the basis of allocation may be amount basis / percentage basis / statistical key figures basis / activity type basis.


Find here the details and steps involved within a SAP FI Project. Here you may get all the important key points to keep in mind in form of PDF Book while handling a project.

 Download attached file.

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