Changes in cost elements - Simple Finance 2.

0
With SAP Simple Finance, the universal journal includes a single field account that covers both the
general ledger (G/L) account and the cost element. So when you migrate to SAP Simple Finance, the
system merges their existing G/L accounts and cost elements. The transactions for the creation KA01
and maintenance of cost elements KA02 become obsolete, replaced by a single transaction for account
maintenance that is FS00. However, this technical change does not mean that the idea of a cost element
has disappeared with SAP Simple Finance.
So by new design, all G/L account types are now part of chart of accounts, which means that controlling
is merged with financial accounting. So we dont need to do FI-CO real time integration mapping
anymore.
As you know the cost element design is a key part of setting up your controlling (CO) system. In SAP
Simple Finance, as the G/L accounts and cost elements are merged and below is the detailed
explanation of new design in Simple Finance.

The primary cost elements represent the profit-and-loss accounts used to classify your
journal entries. In all accounting approaches you use cost elements to represent wages and
salaries, material expenses, depreciation, etc. If you use account-based profitability analysis (COPA) or if you have make-to-order processes requiring results analysis and settlement, you also
use cost elements for revenues, sales deductions, and so on. In SAP Simple Finance, the G/L
account and the primary cost elements merge into one.
The secondary cost elements record the value flows within CO, such as the charging of utility
costs from a support cost center to an operational cost center, the charging of machine hours to a
production order, the charging of consulting time to a Work Breakdown Structure (WBS) element,
or the settlement of research and development costs to CO-PA. In SAP Simple Finance,
accounts are created for every secondary cost element so that all value flows are visible in the
universal journal and thus in reports such as the trial balance.

G/L account master data in SAP Simple Finance (transaction code FS00) is a combination of the G/L
account maintenance and the former cost element maintenance transactions (transaction code KA01-3).
The main change to below first screen is that you can choose between P&L accounts that do not require
a cost assignment by selecting the account type Non-operating Expense or Income and P&L accounts
that requires a CO account assignment by selecting the Account Type Primary Costs or Revenue.

If it is a Secondary costs account type then system shows up CElem category field in Control data tab
as shown below.

If it is a balance sheet account then system doesnt show up any CElem category field in Control data
tab.

If it is a Primary costs account type then system shows up CElem category field in Control data tab as
shown below.

And also you will see a new field Account Type in SKA1 table which gives below four hints.
X
N
P
S

Balance Sheet Account

Non-operating Expense or Income
Primary Costs or Revenue
Secondary Costs

Major Changes

There is another noticeable change that the old default Assignment tab in the cost element
master record is also gone, so the only way to set up the default account assignments is to use
transaction code OKB9. If you have entered default account assignments in your cost element
master data, the migration process creates entries in table TKA3A (Respective cost object
company code) for these default assignments.

Line item display check box is no longer available in G/L master as shown below.

In addition to the CO period lock (OKP1), the FI period lock should be checked as well.

Fiscal year variants in FI and CO must be identical, including special periods.

You can no longer delete cost elements.

Effects on Customizing
In order to merge your cost element and G/L account master data, you need to migrate your secondary
cost elements to the chart of accounts and transfer the account assignments of your cost elements to
the default account assignment.
You also need to adopt the authorizations, since the authorizations for cost element master data
maintenance have been superseded by the authorizations for G/L account master data maintenance.
To perform these steps, carry out the following activities in Customizing under SAP Simple Finance
Add-On for SAP Business Suite powered by SAP HANA Migration Migration of Cost Elements and
Customizing.
1. Check Consistency of G/L Accounts and Cost Elements
Before starting the actual migration, you need to carry out this step to check whether the G/L
accounts and cost elements are consistent with each other.
Make sure to correct any inconsistencies between G/L accounts and cost elements, otherwise the
G/L account master records will have the wrong account types after migration.
2. Migrate Secondary Cost Elements to Chart of Accounts
3. Display Status of Migration of Cost Elements
4. Migrate Default Account Assignments
5. Display Status of Migration of Default Account Assignments
6. Adopt Authorizations
7. Define Authorizations and Profiles