Controlling (CO) and Financial Accounting (FI) are independent components in the SAP system. The data flow between the above two components takes place on a regular basis. The data flows automatically to Controlling from Financial Accounting.

At the same time, the system assigns the costs and revenues to different Controlling (CO) account assignment objects, such as cost centers, business processes, projects or orders.

The relevant accounts in Financial Accounting (FI) are managed in Controlling (CO) as cost elements or revenue elements. This enables us to compare and reconcile the values from Controlling and Financial Accounting.

Primary Cost elements are cost carriers from Financial Accounting (FI) to Controlling (CO) module and created to compare the G/L accounts of profit loss statements. A Primary Cost element is used to transfer cost from Financial Accounting (FI) to Controlling (CO) Module.

Each Financial Accounting (FI) general ledger account in profit and loss statement are created as primary Cost element in Controlling (CO). Every cost related transaction from Financial Accounting (FI) will be carried over to Controlling (CO) by Primary Cost element only.

A Primary cost element can be directly posted. Primary cost element is linked to a G/L account and must be created in the FI Chart of Accounts first.