This blog post about S4HANA Cost Elements is from our friends at SAPexpert - the source for trusted SAP tutorials, tips, and training content.
With S/4HANA Finance, the universal journal includes a single field account that covers both the general ledger (G/L) account and the cost element. As companies migrate to S/4HANA Finance, the system merges their existing G/L accounts and cost elements.
The transactions for the creation and maintenance of cost elements become obsolete, replaced by a single transaction for account maintenance. However, this technical change does not mean that the idea of a cost element has disappeared with S/4HANA Finance. Learn what changes come with S/4HANA Finance and what remains as before.
The cost element design within the controlling area is a vital part of setting up your controlling (CO) system. In S/4HANA Finance, as the accounts and cost elements are merged, the following changes result: