In which component do you maintain primary and secondary cost element master records?

The primary and secondary cost element master records are maintained in the General Ledger accounting component. This is because the General Ledger acts as the foundation for all financial reporting in SAP, integrating various financial aspects, including cost accounting.

Primary cost elements are directly linked to specific General Ledger accounts and represent costs that are incurred based on postings from external transactions. Secondary cost elements, on the other hand, are used within internal controlling processes to allocate costs internally, and they do not correspond to any external financial reporting.

Cost accounting, while closely related, primarily focuses on internal financial management and does not maintain the cost element master records directly. Profitability analysis deals with analyzing revenue and costs related to specific segments but does not manage the primary and secondary cost element profiles. Internal order accounting is used for tracking costs incurred for specific projects or activities, but it is also not where these master records are maintained.

Thus, General Ledger accounting is the correct area for maintaining these essential records, ensuring that all cost-related transactions are accurately tracked and reflected in the financial statements.