Hi Mohammed,
Cost Element - An entity in SAP which is origin of a cost & are responsible to carry a cost.
There are two types of cost element such as Primary cost element & Secondary cost element
Primary cost element - Cost elements which carries cost from FI to CO is called Primary cost element. General Ledger, Expenses accounts, Revenue accounts correspond to Primary cost elements.
Secondary cost element - Cost elements which generally carry cost within CO are called as Secondary cost elements. Secondary Cost Elements are used exclusively in CO to identify internal cost Flows such as assessments or settlements. They do not have corresponding
General ledger accounts in FI and are defined in CO only.
Regards,
AMol
