sap what is cost element
SAP is a company that provides business software solutions to organizations who want to leverage technology to automate, integrate or improve business processes. SAP cost elements refer to classifying an organizations consumption of production values within a controlled area using the SAP R/3 system.Each cost element corresponds to an item that is cost relevant in the organization's chart of accounts.SAP distinguishes cost elements as primary-cost elements, which are revenue based, and secondary-cost elements, which refer to internal values used inside the organization.he SAP R/3 system functions as an integrated accounting system. Therefore, all cost elements are closely aligned with the general ledger used under the Financial Accounting function. The cost elements record which costs under what categories were incurred in any settlement period.