What is primary cost element in SAP CO - Controlling?

SAP Term: primary cost element

• Component: CO

• Component Name: Controlling

• Description: A cost element whose costs originate outside of and accrual costs that are used only for controlling purposes.

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• Key Concepts: 
  A primary cost element is a type of cost element in SAP Controlling (CO) that is used to record costs and revenues. It is the most detailed level of cost element and is used to track costs and revenues for individual activities or processes. Primary cost elements are used to create a detailed picture of the costs and revenues associated with a particular activity or process. 
  
  How to use it: 
  Primary cost elements are used to record costs and revenues in SAP Controlling. They are created in the Cost Element Master Data (CEMD) screen, where they can be assigned to a particular cost center or activity type. Once created, primary cost elements can be used to record costs and revenues associated with a particular activity or process. 
  
  Tips & Tricks: 
  When creating primary cost elements, it is important to ensure that they are assigned to the correct cost center or activity type. This will ensure that the costs and revenues associated with the primary cost element are accurately recorded in SAP Controlling. 
  
  Related Information: 
  Primary cost elements are one of several types of cost elements available in SAP Controlling. Other types of cost elements include secondary cost elements, which are used to group related primary cost elements together, and statistical cost elements, which are used to track non-monetary values such as hours worked or number of items produced.