Creation pf Plant (ox10)

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Assign Plant to Company code (ox18)

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Creation of Material Master (MM01)

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Select Basic Data 1 and 2, Accounting Data 1 and 2, and Controlling data 1 and 2

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Enter Plant
Creation of Raw Material
Creation of BOM (Bill of Material)

Creation of activity Type

1. Secondary cost elements:

They are integral part of Controlling Module. Each type of Secondary cost element is intended for
specified business purpose
Cost Element Category21: is used for settling the costs to internal cost objects
Cost element category 41: This cost element used for calculation of overheads
Cost Element Category 42: This type is used for Assessment of costs
Cost element Category 43: This type is used for activity costing
The difference between secondary cost elements, SKF and Activity
Secondary cost elements are used for allocations, absorption or settlement of values in the controlling
Activity is used to measure the quantity of the activity carried out
SKF is purely used for reporting and for using it as a basis of allocation of costs in ass essments or
distributions