What is cost type in SAP FI-CA - Contract Accounts Receivable and Payable?

SAP Term: cost type

• Component: FI-CA

• Component Name: Contract Accounts Receivable and Payable

• Description: A classification of general ledger items belonging to an assignment key during the processing of event-based deferred revenues. The assignment key represents a unit such as a product or service, for which event-based deferred revenues are posted.

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• Key Concepts: 
  Cost type is a component of the FI-CA Contract Accounts Receivable and Payable module in SAP. It is used to classify costs associated with a contract, such as administrative costs, taxes, and other fees. Cost types are used to determine the total cost of a contract and can be used to generate reports for analysis.
  
  How to use it: 
  Cost types are created in the FI-CA module and assigned to contracts. When creating a cost type, you will need to specify the cost type name, description, and account assignment. Once created, the cost type can be assigned to contracts in the system.
  
  Tips & Tricks: 
  When creating cost types, it is important to ensure that they are properly classified and assigned to the correct accounts. This will help ensure that all costs associated with a contract are accurately tracked and reported.
  
  Related Information: 
  For more information on cost types in SAP FI-CA Contract Accounts Receivable and Payable, please refer to the SAP Help documentation.