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Cost Element Group Hierarchy in SAP Controlling

Cost Element Group Hierarchy in SAP Controlling

What is a Group Hierarchy?

Group Hierarchy is a tree structure of any object defined for various purposes like:


  1. Representation

  2. Segregation

  3. Reporting

For e.g. Cost Element Group Hierarchy appearing under Image 1.01 is self explanatory how Cost Element Group looks like.


Cost Element Group in SAP

Image 1.01 – Sample Cost Element Group


The hierarchy is created based on Cost Elements created in a Controlling Area.

How is it structured?

The Groups are divided into following segments:


  1. Top Node

  2. End Node

  3. No End Nodes

Top Nodes are levels which are at the top of the hierarchy.

End Nodes are levels which are at the end of the hierarchy.

No End Nodes are levels which are neither on top nor at the end, which means in a hierarchy this kind of nodes are between top and end nodes.

How to Create a Cost Element Group Hierarchy?

Transaction Code for Creation: KAH1

After entering Transaction Code KAH1, the system may ask us for the Controlling Area and then will navigate us to the screen appearing under Image 1.02


Create Cost Element Group Hierarchy in SAP

Image 1.02 – Create Cost Element Group Hierarchy


On the screen please enter some suitable code for Cost Element Group. This group will be identifier for the structure and can be used at various places.

After entering some name, press enter and the system will navigate us to the next screen where we will have to create the whole structure as appearing in the Image 1.01.

We will once again visit the Image 1.01 and we will be able to understand the structure of Grouping created as explained below:

Group 1001A – Top Node

Group 1001B1 / 1001B2 / 1001B3 – End Nodes

Group 1001B – No End Node

Creation of Top Node

The Top Node is same as per the name given by us while creation of the Cost Element Group initially. So the Group code comes automatically when we press enter after KAH1. Enter the description of this Group or Node (Sample Hierarchy for Demo).

Creation of No End Nodes

Follow steps given below:

  1. Keep your cursor on Top Node i.e. 1000A

  2. Click on Lower Level button

  3. This will create a blank group without code (1000B)

  4. Enter the description for the Group (Node 1 Level 2)

Following above steps we can create node just under the Top Node. This way we can create as many nodes as we want.

Creation of End Nodes

Follow steps given below:

  1. Keep your cursor on Node i.e. 1000B

  2. Click on Lower Level button

  3. This will create a blank group without code, enter the code (1000B1)

  4. Enter the description for the Group (Node 1 Level 3)

To add more nodes at the same level of 1000B1 follow steps given below:

  1. Keep your cursor on Node i.e. 1000B1

  2. Click on Same Level button

  3. This will create a blank group without code, enter the code (1000B2)

  4. Enter the description for the Group (Node 2 Level 3)

  5. Same way you can add as many additional nodes as you want.

Use of Cost Element Group

The Cost Element Groups can be used at many places, few of them are listed below:


  1. Internal Order Reports

  2. Cost Centre Reports

  3. Costing Sheet

  4. PA Transfer Structure

  5. Allocation Structure

  6. Source Structure

  7. Cost Centre Distribution Cycle

  8. Cost Centre Assessment Cycle

  9. CO-PA Assessment Cycle

  10. etc.

The Cost Element Groups are very useful and every level works as a separate group and can be used separately for the structure under it.

For e.g. in the above structure I can use Cost Element Group 1000A separately and 1000B1 separately. When we use Cost Element Group 1000A the system will provide report based on the complete structure created i.e. all the Cost elements appearing in Image 1.01. When we use Cost Element Group 1000B1 the sytem will provide output based on the structure under 1000B1 i.e. Cost Element 1001 to 1003 only.

Other Info

Transaction Code for Change: KAH2

Transaction Code for Display: KAH3

SAP Best Practices for Cost Element group.

#SAPCostElements #sapcostelementgroup #SAPControlling #Grouping #CostelementgroupsinSAP #SAP #SAPCO

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