CO - Cost of Goods Sold as a cost element?

Hi,
I've been creating primary cost elements for cost and revenues accounts.
I have already created cost elements for revenues, but I have some doubts about an account Cost of Goods Sold. Do I have to make cost element for it?
SD module is being implemented and revenues and cost of goods sold will be posted on SD orders.
CO-PA will not be used.
What is the best solution? Should I create cost elements for Cost of goods sold Account and if YES, which cost element type should I choose (1 or 11?)
Best wishes,
Karol

Thank you very much! Your answer solved my problem.
I have one more question about profit centers assignment to material master.
I have divided my profit center hierarchy in such a way - that I could easily prepare a COS profit and loss statement using them. Basically I have such profit centers like:
- Profit on sale of Goods
- Profit on sale of Materials
- Profit on sale of Service
- Costs of Production
- Other costs of sales
- Costs of Administration
As you can see I didn't reflect in this hierarchy an organization structure.
I was wondering which profit center could be used for Material master assignment.
I know that for sales order there has to be assigned one of:
- Profit on sale of Goods
- Profit on sale of Materials
- Profit on sale of Service
But I don't know whether it is OK to use them for materials master assignment. Can you suggest me some solution? I think that there should be different profit centers for goods and different profit centers for materials.

Similar Messages

Cost of Goods Sold in product costing

Hi Experts,
How can we reconcile the cost components with COGS.
I am getting the planned cost estimates from the costing
Lets us take an exmaple
Planned cogs is 150000 Rs. This figure is from cost estimate
We are getting the actual cogs as 130000 Rs
This includes Raw Materials (100000) + Machine (10000) + Labour (10000) + consumables (10000)
Where can I check these actual costs and how do we come to conclution that these are right.
Is there any transaction to reconcile these values
Please clarify
Regards,
Ram

Hi,
Thank you very much for your reply,
It is having the valid information but the requirement is here i am not getting the actual split of cogs. In this report i can see the revenue, excise, and cogs.
The requirement is how to get the split of cogs for reconciling the actuals.
I am using the report KKBC_KUN as per my bsuiness
please clarify
Regards,
Ram
Edited by: Ramaraghu on Mar 7, 2011 1:35 PM

Cost of Goods Sold by Cost Elements Accounting

EBS Version: 12.1.3
Is it possible to define the COGS (OM: Generate Cost of Goods Sold) to capture Cost of Goods Sold by Cost Elements ?
The way the cost is built through the WIP process is through Cost Elements:
* direct material,
* direct labor,
* manufacturing overhead
* material overhead
* etc...
All these elements are captured separately in WIP and in separate accounts.
Is it possible to keep in separate COGS accounts (COGS -Direct Material, COGS Direct Labor, etc.) and not just be lumped into one Total COGS account at the time of sales order issue.
Is It possible with SLA Customization (derivation rules, etc.)? or modifying workflow?? I need detailed solution please!!!
I need the information in SLA, i don't care if not possible in material distributions.
Thanks...

I need help experts!!!

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 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 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

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

Cost of Goods Sold - Cost Element asking Cost Object

Dear All,
We have defined a G/L account :500000 (Cost of Goods Sold - Field Status Group:G030).
Normally we should not create it as a cost element,but when CRM consultant does a transaction ,system asks that GL account :500000 not created as a cost element,Hence that time I have created as a cost element.
Now every time ,system is asking for cost object for this cost element.
As you all know that ,we can maintain in OKB9,but in our scenario,we have more than 3500 Cost Centers,which is not possible.
Can anybody share as how to resolve this issue?
Regards
Subbu

Thanks Mr Ajay for understanding my question.
As I told mentioned in my initial question that I have created the GL:500000 (COGS) when CRM/SD issues the stock for delivery.
What my FI done is that the same GL (500000) is assigned both in GBB-VAX and GBB-VAY as per the client requirement.
Now suggest me as how to come out from this situation?
If I need to do Validation ,request you to give your guidance as how to do it as I never done.
Thnaks in advance.
Su

Cost of goods sold report

Hi all,
Is there any standard report for Cost of goods sold by production order?Please let me know how to see cogs report by production order.
Let me know how to calculate this cogs .
Thanks,
Sai.
Edited by: fico sap on Jul 11, 2008 1:42 PM

Friend
Order shows material cost & activity cost ; you can charge over head as well
Means;
Total order cost = Material costActivty CostFOH
You can check order wise planned vs actual cost KOC4
if useful assign points.
bukhari

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 Turnover Ratio query

Has anyone written a Cost of Goods Sold Turnover ratio query? The formula would be Cost of goods sold/(beginning inventory+ending inventory/2) within a specified date range at the item key level.
Thank you for any assistance
Gary

Hi Gary,
We, at our end have scheduled a PROFITABILITY STATEMENT on a monthly basis to management.
The logic behind that is as follows :
we batch manage the items on first in first out basis.
By designing view for GRPO and corresponding batch related tables we retrieved the GRN information with the batches created in system and joined them with sale related information from within another view.
So our management is getting item group wise and batch wise profitability for a particular period.
let me know if you want those views.
thanking you
Malhaar

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 Accounts by Region

Hi Friends,
While doiing the GL settings base on Item Groups, there is an option to set the Revenue Account based on Domestic.EU.Foreign.
Bu why is there no Cost of Goods of Sold accounts based on that.
Is Cost of Goods Sold account use for calculating gross profit. If so it makes sense to have a single Cost of Goods Sold.
Can anyone correct me if ia m wrong and please explain to me why Cost of Goods Sold account is not divided in to Domestic, EU, Foreign.
Further what is the Expenses Account, in GL settings according to Item Groups, mean.
Thanks & Regards
Shiva

Hey Julie,
We also need to use a different GL account for inter-company and I am wondering where do you setup GL account by warehouse?
Can you please provide the menu path or transaction code?
Thanks,
Kundan

Cost of price difference and cost of goods sold

Dear All,
I got the explanation from forum :
The price variance differences are posted per purchased item which are used in making the material to be sold. this difference rolls to the COS line, but not the COGS account.
May I know what is the difference of cost of goods sold and cost of sales. Both also cost, cost of goods sold is inventory turned to cost upon goods sold whereas cost of sales, to me, can be indirect cost.
Any help to further explain of COS in relation to price variance?
Thanks

Hi
In SAP there is a concept of COGS, but there is no concept of COS.. COS is more of a accounting terminology,... There are different schools of thought on COS/... Some companies treat COS = COGS + Selling overhead...
With Material Ledger, the variances of components purchased can be rolled up to the Header Material which consumes them.... If this header mat is consumed in further processes, the consumption can also be revaluated.... Going So on and so forth, you can also revaluate the COGS of the final material....
Simply said, when variances are rolled up, you can revaluate the inventory... If the inventory is consumed before revaluation, then you can revaluate Consumption / COGS....
Hope this helps
Regards
Ajay M

CO - Cost of Goods Sold as a cost element?

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