Create a Secondary Cost

In SAP Simple Finance, only primary cost elements have an associated G/L account. Secondary cost elements which are used to allocate costs for internal activities, they don’t have any corresponding G/L account.

Step 1 − To create a secondary cost element, navigate to Accounting → Controlling → Cost Element Accounting → Master Data → Cost Element → Individual Processing → Edit Cost Element.

Step 2 − In the next window, enter G/L account. Enter the Company Code and click the Template button.

Step 3 − You will be prompted to enter the value in the Reference G/L account box.

Step 4 − You will be prompted to enter the value in the Reference Company Code box.

Step 5 − Click the Continue button. In the next window, enter the text box and Consumption, raw material 2 in the G/L Acct Long Text box.

You can create a secondary cost by selecting ChartOfAccounts as Secondary and by following the steps as used in primary.