Cost of Goods Sold Value

Hello,
In our material master, neither Moving Average price nor Standard price is maintained,But while doing PGI it is taking value of Cost goods Manufactured from costing Sheet.
Pls help me to know,how this value gets determined during PGI and procedure to capture this cost of Goods manuf. in condition type in a sales order.
Regards
Amit
Edited by: Amit Gupta on Mar 23, 2009 5:40 AM

Hello Lakshmipathi ,
Yes, Our is Make to Order Scenario.Pls help us to determine this cost in Sales order after costing Run.
In EK02 we can capture Cost of Goods Sold,But i want to capture Cost of Goods Manufactured.
Thanks for your prompt response.
Regards
Amit

Similar Messages

  • Cost of Goods sold value problem

    Dear all,
    In a Make To Stock, material use "Moving average" case.
    For example
    1-Sep: Moving avg = $30
    15-Sep: Sales & PGI (A)
    30-Sep: Moving avg = $70
    30-Sep: Sales & PGI (B)
    First of all, I expect the Cost of goods sold for Sales & PGI (A) should be $30, and $70 for (B).
    Is that correct?
    However, now I have all the Sales & PGI entries created on 30-Sep,
    And the posting date is controlled by the Actual GI Date in the Delivery.
    And I found that both PGI value became $70!!!
    Could anyone explain that to me??? Or could anyone provide me a solution to this?
    Many Thanks!
    Best regards,
    Chris

    PLease check this SAP note. I think this will solve your problem
    The following example should demonstrate how such prices can come about. The main cause of the steep rise in the price is that a posting, the value of which is externally predefined, results in a stock quantity which is close to zero. Furthermore, goods receipts exist which are valuated with the current moving average price since no external amount is specified.
    Example:
    Overview:
                                      Quantity        Value    MAP
    (1) Initial stock:                0 items        0.00 $   200.00 $
    (2) GR for 1st purchase order: +1500 items +300,000.00 $
        Stock after (2)            1500 items  300,000.00 $   200.00 $
    (3) GR for 2nd purchase order: +1500 items +330,000.00 $
        Stock after (3)            3000 items  630,000.00 $   210.00 $
    (4) GI for the delivery:       -2849 items -598,290.00 $
        Stock after (4)              151 items   31,710.00 $   210.00 $
    (5) Reversl of 150 itms from (1)-150 items  -30,000.00 $
        Stock after (5)                1 item    1,710.00 $1,710.00 $
    (6) Inventory difference        +150 items +256,500.00 $
        Stock after (6)              151 items +258,210.00 $ 1,710.00 $
    (7) Reversl of 150 itms from (1)-150 items  -30,000.00 $
        Stock after (7)                1 item  +228,210.00 $ 228,210.00 $
    Detail:
    1. In the following, say for material X price control 'V', the moving average price is 200.00 $ and the current entire valuated stock is 0 items.
    Assume you have a purchase order of 1500 items at 200.00 $ each. Moreover, 10 partial goods receipts are now posted for each of 150 items for this purchase order, so that material X then has a total stock of 1500 items with a value of 300,000.00 $.
    2. Another purchase order now exists of 1500 items at 220.00 $ each. Here also, 10 partial goods receipts are posted for each of 150 items goods receipt. As a consequence, material X now has a total stock of 3000 items with a value of 630,000.00 $. The moving average price is thus 210.00 $.
    3. Now let's look at a delivery of 2849 items. This is valuated as follows using the logic of the quantity to be posted * total value / total stock. This leads to a total stock of 150 items with a value of 31,710.00 $. This does not affect the moving average price, and thus remains 210.00 $ also after the posting.
    Now consider the following postings:
    4. You reverse the first goods receipt under 1. This reversal would valuate the goods receipt of 150 items with a value of 30,000.00 $. As a result Material X after posting has a total stock of 1 item with a value of 1,710.00 $. The moving average price would thus already be 1,710.00 $.
    5. There is now an inventory difference of 150 items without entering an external amount. This posting is valuated with the moving average price and leads to a stock quantity of 151 items with a stock value of 258,210.00 $.
    6. You now enter another reversal for one of the partial goods receipts cited under 1. This then is valuated again with a price of 200.00 $. This results in the material having a stock of 1 item with a value of 228,210.00 $.
    If you now repeat transactions/events 6 and 7, you can imagine that the moving average price grows rather quickly.
    Solution
    This effect is both from a business and accounting point of view the logical result if there are a lot of goods receipts which have to be valuated with the moving average price and goods issues which in contrast to this are posted with an externally predefined amount.
    You can determine tolerance limits for the moving average price variances in Customizing (Transaction: OMC0). Further information can also be found in the R3 guide:  MM - Invoice verification and material valuation.

  • Cost of Goods Sold and Inventory Value

    Hi
    I am looking to setup KPI for Inventory Turns in BI. This needs "Cost of Goods Sold" and "Inventory Value" for Orders for a Plant.
    I wanted to know if this information is directly available in any standard extract or do I need to write a Custom Extract for this. I did try searching for this but not able to find this information directly. Do I need to derive the information from some other Key Figures?
    TIA
    Abhishek

    COGS Value we are getting for the COGS GL Account from FIGL. We are using the extract 0FI_GL_4 and then from the DSO 0FIGL_O02
    Inventory value we are taking from the Cube 0IC_C03. Please note that the Transformations to the DataSource 2LIS_03_BX, 2LIS_03_BF and 2LIS_03_UM are available in the latest Patch 11 for BI Content 703 and should be used instead of the old Transfer Rule/Update Rule.
    Regrads
    Abhishek

  • Cost of Goods sold in cross company sales

    Hi ,
    We have a situation where we need to transfer goods from one company code and site ( Company A ) to another company code and site ( Company B )at the cost price of company A. We are creating a purchase order for this goods from Company B to Comapny A and in turn a sales order is issued for this from Company A.We pick up purchase price in PO from as the Per unit cost of comapny A.
    The issue arises here about in the delivery from company A where the cost of goods sold in delivery is done based on the total stock value divided by the quantity sold as this is SAP method of calculation and this does not always match with the per unit cost. Currently we are passing this difference as discounts.
    This is the best we could achieve where by we have been able to satisfy the business need of having no difference on the purchanse price of company B and sales price of company A.
    My question is : Whether is there any more effecient method of achieving the desired result without having the difference which we are currently passing on as discounts ???
    Would really appreciate any help.
    Thanks and Regards,
    Kartik Shah

    Hi Raj/ Mahendro,
    Thank you for sending me the reply. I will briefly explain you the our process. The purchase from external vendor is done in warehouse belonging to one company code. The purchase is done at Moving average price but normally for an  article there are no price variations. Goods receipt in warehouse is done after adding freight and insurance onto the cost of article.This is the value at which we want to transfer to another site in anotehr company code.
    Now the replneshiment requirement from the other site which belongs to different company code raises a PO on to the warehouse. This PO picks up the article price (KOMV-KBETR) as the MAP from the warehouse (MBEW-VERPR). However the field MBEW-SALK3 for the warehouse is not exactly the quantity multiplied by MAP.It is actually the VERPR field which has the value based on the field SALK3 divided by the stock quantity and rounded off to the two decimal places. There is slight variation here itself due to the rounding of the total stock value and then again rounding at the per unit price.( Both the above fields of MBEW)
    What we are doing on the sales order is to pass the MBEW-VERPR as EDI1 and the sotck value for the quantity ordered  ( ZDEI a new condition) by the site as MBEW-SALK3  divided by the total stock at that point and multiply by the quantity ordered. So due to rounding differences there is difference in the value of EDI1 and ZEDI . Again during the billing from warehouse this condition ZEDI picks up the stock value based on the quantity delivered.
    Since there are minor differences due to the rounding of values between per unit price and the actual stock value this are being passed off as discount and the payables by the ordering site and receivables from the warehouse are the same. Cost of goods sold from warehouse is the actual stock value being sold which is the revenue for the warehouse. 
    Even if we use the standard SAP stock transport order with billing how could we ensure that we do not have even this minor differences.
    Doing away with another document is not the requirement  since we already have automated the process of sales order creation from the pruchase orders.
    Do you think we can achieve our requirement using SAP standard process? Except for this rounding differences we are fine with the current process as well.
    Do Look forward to your answer.
    Warm Regards,
    Kartik Shah

  • Cost of Goods Sold Table of CK13N

    Dear Experts,
    How to find Cost of Goods sold components of CK13N values with respective  cost element in Table
    kindly provide valuable suggestion
    With regards,
    Ganesh

    Ganesh,
    you will get the cost estimate results from KEKO and KEPH tables.
    In the standard cost scenario COGM and COGS values are same.
    when yo see the cost component view in the CK13N it will match with cost fields in the KEPH.
    pass the material and plant in KEKO table from there take cost estimate number, now pass this cost estimate number in KEPH table as per your cost components in each cost fields you will get the details.
    Please let me know if you need any further help.
    Regards,
    Ravi

  • Cost of Goods Sold Calculations

    I have a planning folder where the user first enters a company code, a currency and a profit center into the respective variables.  In the subsequent template user enters material SKU along with planned Sales Quantity and planned Average Selling Price (ASP).  I load standard prices for all material from R/3.  I have two FOX formulae running in the background as soon as the user saves his/her entries.  First one calculates product revenue, which is (ASP * Quantity).  This one works perfectly fine.  The second formula needs to calculate Cost of Goods Sold (COGS), which is (Standard Price * Quantity).  This formula fails miserably.  As far as my understanding goes, in order for a FOX formula to work all the characteristics that are not in the parameter group between the standard price record and the quantity record should match exactly.  If there is an inherent mimatch between the records then you try to take care of the mismatch in the FOX formula by hard coding.  The quantity records have SKU, company code, profit center, currency (!yeah, currency!), units of measure.  Whereas the standard price records have SKU, distribution plant, currency.  I understand that I can put # sign for company code and profit center in the FOX formula for selecting a standard price record, but unfortunately the currency of the standard price record may not be the same as that of currency of the quantity record since many materials are sourced from a distribution center outside the company code!!  So the simple multiplication of Std price * quantity is not working!!!
    I think of two options here.
    1.  As it doesn't make sense to populate currency field for a quantity record, I should move the currency variable into the data field for ASP records only.  This way I can put # in currency field for quantity record selection.  But the downside of this is that instead of posting quantity and ASP in one record into the cube, two seperate records get posted when user saves the data.  As our users plan on 10000 different SKUs across the globe, this may not be a good idea unless the option two doesn't work.
    2. There must be a way to make the FOX formula work even with the mismatch of currencies between quantity and standard price.  I need your inputs in this regard.
    If someone could also explain whether or not my understanding of FOX formula is correct, that would be great.  As always, I would appreciate all the helpful inputs with points.

    Yes FOX can be difficult to achieve things that are simpler than simple
    The way you described, it will only search fo a standard price on the same currency.
    Try to set the currency as changeable characteristic and then search prices for each possible currency.
    standard price value  = {standard price, currency1} +                 {standard price, currency2} etc..
    The possible currencies could also be filled in a variable which is read at runtime.
    Don't know an easier way!
    Regards,
    Beat

  • Cost of goods sold duing cross company sales

    Hi ,
    We have a situation where we need to transfer goods from one company code and site ( Company A ) to another company code and site ( Company B )at the cost price of company A. We are creating a purchase order for this goods from Company B to Comapny A and in turn a sales order is issued for this from Company A.We pick up purchase price in PO from as the Per unit cost of comapny A.
    The issue arises here about in the delivery from company A where the cost of goods sold in delivery is done based on the total stock value divided by the quantity sold as this is SAP method of calculation and this does not always match with the per unit cost. Currently we are passing this difference as discounts.
    This is the best we could achieve where by we have been able to satisfy the business need of having no difference on the purchanse price of company B and sales price of company A.
    My question is : Whether is there any more effecient method of achieving the desired result without having the difference which we are currently passing on as discounts ???
    Would really appreciate any help.
    Thanks and Regards,
    Kartik Shah

    Hi Christian,
    Thank you for sending me the reply. I will briefly explain you the our process. The purchase from external vendor is done in warehouse belonging to one company code. The purchase is done at Moving average price but normally for an  article there are no price variations. Goods receipt in warehouse is done after adding freight and insurance onto the cost of article.This is the value at which we want to transfer to another site in anotehr company code.
    Now the replneshiment requirement from the other site which belongs to different company code raises a PO on to the warehouse. This PO picks up the article price (KOMV-KBETR) as the MAP from the warehouse (MBEW-VERPR). However the field MBEW-SALK3 for the warehouse is not exactly the quantity multiplied by MAP.It is actually the VERPR field which has the value based on the field SALK3 divided by the stock quantity and rounded off to the two decimal places. There is slight variation here itself due to the rounding of the total stock value and then again rounding at the per unit price.( Both the above fields of MBEW)
    What we are doing on the sales order is to pass the MBEW-VERPR as EDI1 and the sotck value for the quantity ordered  ( ZDEI a new condition) by the site as MBEW-SALK3  divided by the total stock at that point and multiply by the quantity ordered. So due to rounding differences there is difference in the value of EDI1 and ZEDI . Again during the billing from warehouse this condition ZEDI picks up the stock value based on the quantity delivered.
    Since there are minor differences due to the rounding of values between per unit price and the actual stock value this are being passed off as discount and the payables by the ordering site and receivables from the warehouse are the same. Cost of goods sold from warehouse is the actual stock value being sold which is the revenue for the warehouse. 
    Even if we use the standard SAP stock transport order with billing how could we ensure that we do not have even this minor differences.
    Doing away with another document is not the requirement  since we already have automated the process of sales order creation from the pruchase orders.
    Do you think we can achieve our requirement using SAP standard process? Except for this rounding differences we are fine with the current process as well.
    Do Look forward to your answer.
    Warm Regards,
    Kartik Shah

  • OM:Cost of Goods sold work flow customization to take it from concerned off

    OM:Cost of Goods sold work flow customization to take it from concerned office in the place of inventory org

    Yes FOX can be difficult to achieve things that are simpler than simple
    The way you described, it will only search fo a standard price on the same currency.
    Try to set the currency as changeable characteristic and then search prices for each possible currency.
    standard price value  = {standard price, currency1} +                 {standard price, currency2} etc..
    The possible currencies could also be filled in a variable which is read at runtime.
    Don't know an easier way!
    Regards,
    Beat

  • No COPA document for Cost of Goods Sold

    I am using both account-based and costing-based COPA.  All transactions from SD billing and FI are posted to COPA. However, document type WL (goods issue/delivery) does not create a profitability analysis document even if the profitability segment in the accounting document is filled up with values for the goods issued.
    I have also assigned condition type VPRS as a value field in KE41.
    What should I do to post the cost of goods sold to COPA?
    Thanks,
    Agnes

    Hello Agnes,
    As far as Account-based goes, you do not need value fields, as account-based uses GL accounts to post in CO-PA. So, there is no need to do mapping in KEI2.
    KE4I and KEI2 should not have the same mapping.
    It is important to keep in mind that Cost-based uses value fileds, and that COGS gets posted at time of billing (whereas FI gets the COGS at time of Goods Issue).
    In Account-based, GL accounts are being used, and COGS is posted in both FI and CO-PA at the same time, that is at Goods Issue.
    Hoping this helps!
    Sylvain

  • OM: Generate Cost of Goods Sold Account problem?

    Hi,
    I have a requirement to set override segment4 of COGS which logic come from Customer Sales Channel lookup values DFF (in this case = 611) if sales channel = "MASS".
    What i did is after Get CCID from the Order Type Id, i created a new function that set the hidden attribute FND_FLEX_SEGMENT4 with the lookup values mention above to override the segment4. Then after that call Validate Code Combination.
    But after debugging the code using cogs_11i.sql from Metalink, segment4 was not get override as shown below :
    New Segment 4 : 611 => come from debug output message
    Return CCID : 151814
    Concat Segments : 3101.3203.02I.212.74010001.000.0000
    May i know how to overcome this problem? Appreciate your help.
    Thanks & Regards,
    Fendy

    Hi,
    Standard workflow "OM : Generate Cost of Goods Sold Account" has following steps:
    1/ Start generating Code Combination
    2/ Get CCID for a line
    3/ Copy Values from Code Combination
    4/ Validate Code Combination
    5/ End generating Code Combination
    If I want to modify the segment4, the custom function to set the attribute FND_FLEX_SEGMENT4 need to be inserted just after the step "Copy Values from Code Combination" (NOT just after "Get CCID for a line").
    Is it what you have done?
    J.

  • Compare with my cost of goods sold account to my sales revenue account

    Hi,
    i want to compare with my cost of goods sold account to my sales revenue account.
    After PGI my COGS a/c will be debited INVENTORY a/c will be credited so after sales my SALES a/c credit & customer a/c debit . I want to see what is the difference value of COGS a/c with respective billing Sales A/C
    No doudt we can see in Profit of margin in billing doc. It is quite impossible to see all document in respective wise. Please give a solution for which i can know what is profit of margin with comparing values in both of Account.
    Thank's
    Abhay

    Hi,
    This is possible through CO-PA report. You can get the result per sales order.
    Also the same can be achieved in FI as follows:
    Outbound delivery document thr" VL01N is captured in "Reference field" of FI doc (BKPF-XBLNR) generated through delivery.
    If the settings are done by SD person to capture the outbound delivery no. in "Reference field" of FI doc generated through Billing document (VF01), then there will be a common field to compare the documents in both accounts.
    In transaction FAGLL03, select the account COGS & Sales revenue account. Once the report displays, sort or take sub total on this common field "Reference".
    This will give you difference between COGS & Sales revenue per document.
    Hope this resolves your query.
    Regards,
    Ashutosh

  • Receiving Error Message : Cost Of Goods Sold Account Generation Failed

    Hi All,
    We need some assistance with this issue...for a given item when the Customer RMA order Line is being received into a given organization/sub inventory/locator we are getting this error message in the Receiving Transactions Interface ( RTI ) as mentioned below.
    Cost Of Goods Sold Account Generation Failed with error :RVTII-030: Subroutine rvtiicreate() returned error
    Cause: Subroutine rvtiicreate() returned an internal error.
    We checked for this item in the organization the Cost of Goods Sold Account has been defined in the Costing Tab in the Item-Org Assignment and this GL account is also enabled on the GL side and is Active.
    The scenario is like this :
    1. Firstly this item is shipped out on an Outbound order line to the customer location and we checked for the valid Sales Order Issue transaction against this item for this order. We checked for its Inventory Distributions as well.. these look to be valid.
    It shows : Inventory valuation account is decremented while the Deferred Cogs of Goods Sold account is incremented.
    2. Then this item is being entered on Return order line and after booking the order line . It goes to Awaiting Return status. Next the user tries to attempt the Receipt for the Customer RMA order line for this item we are getting the error mentioned below in the RTI tables :
    Cost Of Goods Sold Account Generation Failed with error :RVTII-030: Subroutine rvtiicreate() returned error
    Cause: Subroutine rvtiicreate() returned an internal error.
    Coudl someone please assist us with this issue as this is happening in Production instance ..that would be very helpfull of you..
    This is an urgent issue
    thanks

    Hi,
    Standard workflow "OM : Generate Cost of Goods Sold Account" has following steps:
    1/ Start generating Code Combination
    2/ Get CCID for a line
    3/ Copy Values from Code Combination
    4/ Validate Code Combination
    5/ End generating Code Combination
    If I want to modify the segment4, the custom function to set the attribute FND_FLEX_SEGMENT4 need to be inserted just after the step "Copy Values from Code Combination" (NOT just after "Get CCID for a line").
    Is it what you have done?
    J.

  • Cost of good sold  account not updated

    Hi all,
    Could you please advise me on the below issue
    Through sales process billing was completed on fin year 2007.
    In the material master standard price maintained u201C 0u201D because of this reason cost of good sold  account did not updated in FI.
    But the billing document was generated as per billing conditions.
    Physically the inventory has been reduced from the warehouse stock and valued appropriately.
    The financial year already closed, please advise how should rectify this.
    KSR

    Hi all,
    Please advise how to coreect this in finacial year 2008.
    KSR

  • Posting of Commission Exp to calculate the Cost of Goods Sold

    Hi Team,
    I do work in an automobile manufacturing organization and is new to SAP FI module. I have a business requirement which I need to fulfill; I would appreciate if all you gurus help me with finding the solution.
    Business Scenario:  at present, we are posting the following entries to record the commission we paid to dealers for selling vehicles.
    Commission Exp (DR)
         Customer (CR)
    Customer (DR)
         Dealer (CR)
    With these entries we are not been able to track the commission based on vehicle variants i.e. Toyota GLI, XLI etc.
    New Requirement:
    To calculate the Cost of Goods Sold for a variant, I need to track the commission expense based on vehicleu2019s variants. Please help me in finding the solution.
    Thanks

    Thanks for quick response.
    Let me give little more details of type of commission entries we have
    1) Normal Commission - Fixed commission variant wise and is derived from SD.
    2) Additional Commission - No predefined formula, this is totally based on top management discretion. Management decides how much would be paid to a particular dealer.
    3) Sliding Commission deduction - Deduction of certain amount from commission on late payments.
    4) Additional Sliding Commission - Payment of additional commission based on early payment terms.
    Currently, FI department is calculating all these figures on Excel sheets and then post a JV for each type of above mentioned commission.
    How can I configure the system to calculate these amounts automatically without involving Excel Sheet help?
    and how to post these amounts variant wise along with dealers and customers.

  • Cost of goods sold is related with gl code combination id

    Can any one pass the query how the cost of good sold account is l liked with GL code_combination_id

    Like any other GL code, i.e.:-
    select code_combination_id
    from gl_code_combinations
    where segment1 = ’01’
    and segment2 = ’540’
    and segment3 = ’5360’
    and segment4 = ’0000’
    and segment5 = ’000’
    -- etc. according to how your COA is structured
    and chart_of_accounts_id = +{ your COA id }+;
    Regards,
    Jon

Maybe you are looking for

  • Using a for loop to populate JButton values with letters of Alphabet

    I am trying to create a column of 26 JButtons, with the text of the button being a letter of the alphabet, but I want to find a faster way to do it. I've tried using the Character class, but it won't let me use an int variable with the constructor. T

  • Premiere elements 12 does not launch, nothing happens

    I've been using Premiere Elements 12 a few weeks ago and it used to work fine but since yesterday I'm not able to launch it. I don't get any error message, just nothing happens. I tried to reinstall it, disable the firewall too, but nothing works I d

  • Why is the screen quality of ios7 like an android I dislike it

    I very much dislike ios7 some features are nice like the multitasking.

  • DownLoad the Cube Details

    Dear Friends, I have created one cube with base as a ODS. Can we download what are the infoobjects involved into that cube and Update rules, Base ODS and Upadate rules and InfoSource and Transfer Rules, i mean like DataFlow Diagram. If possible pls s

  • Customizing navigation page under 11.5.8

    We are trying to implement BIS under 11.5.8. We have custom responsibilities under which we want to display links to Discoverer Reports. Eg : Finance(Discoverer) is a custom responsibility and once a user gives this responsibility to themselves, then