Creating cost elements

This page allows you to create a new cost element. You can enter a unique description and code identifying the cost element. You can categorize the cost element under a cost element type. You can also set the period during which the newly created cost element is effective. This page also allows you to create multiple cost elements for the same type of cost element. The system saves the details of the newly created cost element and updates the status as “Active”.

Select the “Create Cost Element” link under the “Cost Setup” business component.

The “Create Cost Element” page appears.

Enter the following fields:

Cost Element Type	Use the drop-down list box to select the type of the cost element that you want to create. You can select from “Normal Cost Element”, “Activity Cost Element” or “Allocation Cost Element”.
	Normal Cost Element – indicates the costs of expenses, revenues, investments or liabilities of an organization. These normal cost elements can be mapped to account codes in the “Accounting Setup” business component. Salary, office expenses, stationary, power and fuel could be some typical examples of normal cost elements.
	Activity Cost Element – indicates the costs that rise out of production activities. Operation costs, direct operations labor and purchasing activity costs could be some typical examples of activity cost elements.
	Allocation Cost Element – indicates the cost elements that can be used as a basis for the allocation process. Number of employees, number of labor hours worked and the number of miles traveled could be typical examples of allocation cost elements.
	The system displays “Normal Cost Element” by default on launch of the page.
Effective Date	Use the drop-down list box to select the date from which the cost element is to be effective. All the start dates of the MAC periods that have been defined for MAC years that are in the “Open” status will be available for selection in the chronological order. The system displays the earliest “Open” MAC period by default.

Note: The date selected in this field must be before or the same as the date selected in the “Expiry Date” field.

Expiry Date

Use the drop-down list box to select the date on which the cost element is to expire. All the end dates of the MAC periods that have been defined for MAC years that are in the “Open” status will be available for selection in the chronological order. The system displays the latest “Open” MAC period by default.

Enter the following fields in the “Cost Elements Detail” multiline:

Cost Element	A unique code identifying the cost element (Alphanumeric, 32). Mandatory.
Description	A unique description of the cost element (Alphanumeric, 40).
Long Description	A detailed description of the cost element (Alphanumeric, 255).
UOM Code	The code identifying the unit of measurement (Alphanumeric, 10).
	Help facility available

Note: Ensure that the unit of measurement is entered in this field if “Allocation Cost Element” or “Activity Cost Element” has been selected in the “Cost Element Type” field.

Click the “Create Cost Element” pushbutton to create the cost element.

The system saves the details of the newly defined cost element. This information is saved at the business unit level of the organization structure.

The system also updates the status of the cost element as “Active”.

To proceed, carry out the following

Select the “Create Multiple Cost Elements” link at the bottom of the page to create normal cost elements.

What you can do in this page

Set the type of cost element

You can categorize a cost element as a “Normal Cost Element”, “Activity Cost Element” or “Allocation Cost Element”. The categorization is done based on the business requirements.

Set the “Cost Element Type” field to “Normal Cost Element” if you want to create normal cost elements.
Set the “Cost Element Type” field to “Activity Cost Element” if you want to create activity cost elements.
Set the “Cost Element Type” field to “Allocation Cost Element” if you want to create allocation cost elements.