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Secondary Cost Elements’ represent the consumption of production factors provided internally by the enterprise itself, and are present only in the CO. They are actually like cost carriers, and are used in allocations and settlements in CO. While creating these elements, you need to mention the cost element category, which can be any of the following:

  • Category 21, used in internal settlements 
  • Category 42, used in assessments 
  • Category 43, used in internal activity allocation
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