Secondary cost elements are used exclusively in Controlling (CO) and have no relationship with general ledger accounts of Financial Accounting (FI). Secondary cost element created in controlling (CO) module and used for internal allocation purpose. A Secondary cost element cannot be directly posted.

The postings to these accounts do not affect the Profit or Loss of the company. Secondary Cost elements are used in transactions which are within Controlling (CO) module only and no transaction effect in Financial Accounting (FI).

Secondary cost elements are posted indirectly. Below is the list of Secondary Cost Elements Categories –

• 42: Assessment
• 43: Internal Activity Allocation
• 21: Internal Settlement
• 31: Order/Project results Analysis
• 41: Overhead Rates

Secondary Cost Element Creation: -

Below process explains creating a Secondary Cost Element TCTSCE (Test Secondary Cost Element).

Step-1: Enter the transaction code KA06 in the SAP command field and click Enter to continue.

(OR)

Expand Accounting → Controlling → Cost Center Accounting → Master Data → Cost Element → Individual Processing → KA06 - Create Secondary . Double Click on it to open.

Step-2: - In the next screen, enter the below details and press Enter.

• Cost Element -- Specify cost element name
• Valid From -- Specify cost element effective date

Step-3: - In the next screen, enter the below details and press Enter.

• Name -- Specify Secondary Cost Element name
• Description -- Specify Description
• CElem Category -- Select the Secondary element category from the list

Step-4: Click on Save button to save the changes.

Step-5: Status bar displays the below message once the primary cost element saved successfully.

Technical details: -

• Transaction: KA06
• Menu Path: Accounting → Controlling → Cost Center Accounting → Master Data → Cost Element → Individual Processing → KA06 - Create Secondary