Process Cost Elements Conditions You are a Budget Analyst with access to a computer the GFEBS training database applicable GFEBS references and awareness of Operational Environment OE variables and actors ID: 714349
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Process Cost ElementsSlide2
Action: Process Cost ElementsConditions: You are a Budget Analyst with access to a computer, the GFEBS training database, applicable GFEBS references, and awareness of Operational Environment (OE) variables and actorsStandards: With a minimum 80% accuracy, learners must demonstrate proficiency with:Correlate Cost Elements and Revenue ElementsTerminal Learning Objective
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Provide an overview of the costs and revenues that occur within an organization.They also typically indicate the type of cost or revenue associated with a posting.External ReportingLegal ReportingCompany CodeUSSGL G/L Account
Financial StatementsProprietary vs. Budgetary
Cost Element is Bridge
Internal Reporting
Mgmt Reporting
Cost and Revenue Elements
Plans and Budgets
Cost Center
Internal Order
(FI) Financial
(CO) Controlling
Cost Elements is
a bridge between Financial and Controlling.
Cost & Revenue Elements
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Every Primary Cost Element must have one, and only one corresponding G/L Revenue or Expense account in the FI Module of GFEBS.But every G/L account will not have a corresponding Primary Cost Element – since most G/L accounts do not track revenue or expenses and do not have a “Costing” Function.The GL accounts and Primary Cost Elements are linked together so that every time a posting occurs to the G/L account in FI, the same posting also occurs to the corresponding Primary Cost Element in CO.This allows for the Controlling Module to maintain a mirror image of the expense values posted in FI.FM SC
CO
RM
PP&E
FI
All Modules are Linked - Working together in GFEBS
Cost Element: Financials (FI) and Cost (CO) Bridge
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Primary Cost Elements and expense G/L Accounts are also linked to Commitment Items in the Funds Management (FM) Module so that any time a budget-relevant posting occurs in FI and/or CO, the Funds Management Module is updated. Commitment Items in FM will be used to tack budget execution.Every value posted against a Primary Cost Element must also be associated with at least one cost object (CC, IO, BP or WBS Element)To allow the system to record the nature of the revenue or cost (the Primary Cost element) and the consumer/driver (the cost object).Primary Cost Elements will be created or changed automatically each time a corresponding G/L revenue, expense account, or gains/loss is created or changed in the FI Module.Financials and Cost Bridge (Cont.)
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What are primary cost elements?Elements of cost with a Corresponding Expense account in the General Ledger (G/L).Similar to the current elements of resource (EORs) or Commitment Item.What are secondary cost elements? - Elements of cost that Do not have Corresponding Expense Accounts in the General Ledger. - Track the internal movement of costs, such as allocations or settlements. - Provide a more accurate view of where costs are incurred within the organization. - Can be thought of as “Summary” Cost Elements.Primary / Secondary Elements
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What are revenue elements?-Record types of revenue (or earnings) within a controlling area.-Each has a corresponding revenue account in the General Ledger.Army activities that generate revenue include, but are not limited to: -Foreign Military Sales -Forestry -Fish and Wildlife License Sales Revenue Elements
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Primary Cost Elements and Secondary Cost Elements their purpose and corresponding Legacy Data Elements
GFEBS Cost Objects VS. Legacy Data Elements
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Conduct Practical Exercises
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Walkthrough: Transaction Code KA01Conduct Practical Exercise 15.1All Master Data (Cost Element) are created in the system. Perform this Transaction; The system will display an Informational Message “that the Cost Element already exist. Example: Create Cost Element 6100.11B1 (O/E Military Pay).
Practical Exercise:
Create Primary Cost Element
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Walkthrough: Transaction Code FS00Follow the Menu Path to access Edit G/L Account chart of Accts Data. Menu>Environment>Create General Ledger Account>In Chart of AccountsUsing T-Code KA01 (Primary) or KA06 (Secondary)Practical Exercise: Display GL Account / Primary Cost
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Walkthrough: Transaction Code KA06Conduct Practical Exercise 15.2Use this procedure to create a Secondary Cost Element. Secondary Cost Elements track the internal movement of costs, such as allocations or Settlements that provide a more accurate view of the beneficiary of costs.
Secondary Cost Elements can be thought of as “Summary” cost elements.
Perform this procedure when you receive notification that a secondary cost
element needs to be
created.
Practical Exercise:
Create Secondary Cost Element
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Walkthrough: Transaction Code KA02Conduct Practical Exercise 15.3This is a Master Data Element: Only the Centralized or Decentralized Master Data Maintainer may change Master Data. The Cost Element already exist in the system with a corresponding G/L Account.
Practical Exercise:
Change Cost Element
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LSA #1 Check on LearningQ1: Name two Army activities that generate revenue, but are not limited to.A1:Q2: T/F A Primary Cost Element does not have a corresponding expense account in the General Ledger (G/L)?A2:Q3: What cost elements provide a more accurate view of where costs are incurred within the organization?A3: Forestry (2) Fish and Wildlife License Sales (3) Foreign Military SalesFalse
Secondary Cost Elements
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LSA #1 Summary
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Questions?
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TLO SummaryAction: Process Cost ElementsConditions: You are a Budget Analyst with access to a computer, the GFEBS training database, applicable GFEBS references, and awareness of Operational Environment (OE) variables and actorsStandards: With a minimum of 80% accuracy, learners must demonstrate proficiency with:Correlate Cost Elements and Revenue Elements
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