COGI Procedure

1.       In SAP, several finished products (packed-printed closures) utilize the same semi-finished product (molded closure). Finished products will be planned based on re-order point planning. The semi finished product will be planned based on dependent requirements generated. The semi finished product will have a monthly lot size so that a single production order will be created for an entire month. The quantity of this production order will be adjusted such that it will be able to fulfill the entire months requirements. That is, if required, the Production Planner may change the quantity of the production order to fulfill the entire months requirements before releasing the production order. Production will be controlled on this semi finished product by pausing production as and when required based on the demand of finished goods. In SAP this will be achieved by turning OFF (or zeroing out) the available shift hours for the work centers producing the semi-finished (molded closure). The work centers that produce semi finished goods are controlled by the planner that plans the finished products (packed-printed closures).
2.       Confirmations for the finished goods will be done real time with the help of a scanning interface. Along with confirmations, automatic Goods Receipt will also happen. Also, at the time of Confirmation Goods Issue of the materials required to create the finished goods (semi-finished molded closures) will take place through Back flushing. If there is insufficient material on hand COGIs will be created for the molded closures.
3.       Confirmations for the semi-finished materials (molded closures) will also be done through a scanning interface. However, the confirmation of the molded closures may be delayed by 24 - 36 hours. The confirmations trigger an automatic Goods Receipt of the molded components & an automatic Goods Issue of the molded closure components through Back flushing.
4.       When COGIs are cleared for the finished materials, the confirmed molded closures are consumed. Since confirmation of the finished goods take place real time & consumption of the molded components take place with a 24 36 hr time lag, COGIs are continuously created.
5.       To eliminate this issue, if COGIs are not cleared for the first few days, inventory will build up for molded closures. When sufficient inventory of molded closures build up, & confirmations are performed for the Packed-Printed Closures, there would now be materials available for consumption during Back flushing. Hence, COGIs will no longer be produced.
6.       This leaves only COGIs created for the initial few days to be cleared. COGIs for these initial days can then be cleared at the end of the month when stock of molded closures would be available.
(** Does this procedure create any issues ??? Check for issues with reservations created by the finished product on the semi-finished product & how FICO could be affected ***)

Hi Guys
Unfortunately I do not think that you will get an answer now. Either your question is not simple or we do not know the answer.
So in the interest of keeping the Forum tidy and easier to surf through could you please close your thread and either try one of the other forums or try another post. I do not think that most people will bother to look this far back anymore.
Sorry I cannot help as I would if I could.
Regards
Frenchy.

Similar Messages

Error in COGI

Hi Experts,
I have an issue with COGI, Client has performed Goods Issue(261) for a particular process order through a background job, later he has done the 262 for the same process order after knowing that he has done 262 for the same with a custom program due to some excess issue happened, while doing the 262 for the Process order system has recorded an Error in COGI as below:
Units of measure Unit 1/ Unit 2 are different
Message no. M7182
Diagnosis
The stockkeeping unit contained in the material document to be cancelled is not the same as the stockkeeping unit contained in the material master record. However, a document can only be cancelled if the stockkeeping units are identical.
System Response
In this case, the system will not cancel the material document.
Procedure
To carry out the reversal, re-enter the given transaction using the relevant reversal movement type.
I have seen in the material master that the BUOM is same as the one which is in the docment which got posted during the 261 movement for the process order.
Also i see that the Alternate Unit conversion factor is maintained for both the units which are maintained in the Material master.
I have suggested client to do manual 262 through MB1A and erase the entry from COGI, but he doesnt want to do it manually.
Can you please suggest if there is any process to get rid of this error and process the 262 for the process order.
Regards
Aravind

I believe you should have addressed this question to PP forum.

Free issue COGS not updating

Hi,
I am having a scenario where i have different pricing procedure which gets triggered in Delivery and through BDC we update the value from that. It working fine for normal sales order but in Free Issue i am getting an error as the other pricing procedure price is becoming Zero, but i want the normal price of that material should be triggered in delivery pricing procedure and that should only be updated in COGS.
I am using document type - FD and Item category - KLN.
KIndly suggest what config settings needs to be done to trigger the delivery pricing procedure with values. Copy control i have maintained the setting : Pricing Type - B(carry out new pricing).
Thanks in advance....

Hi John,
It could be an authorization issue with the user in R/3 used for establishing communication with archiving server. Please check OSS note 602600 for this. To cut it short basically this user should have authorization object
S_WFAR_OBJ with the value "70" for the activity
                     with the value "*" for the content repository
                      with the value "*" for the document type
                      with the value "*" for the object type
This is what we have implemented for our optical archiving. Hope this solves the issue.
Regards.
Ruchit.

2 different COGS in CO-PA

Dear CO-PA gurus.
I have requirement to keep 2 different COGS in CO-PA.
For example, if sold qty is 10pcs and standard cost is $10
and managerial accounting purpose cost is $12,
I'd like to send both of $10x10pc=$100 and $12x10pc=$120.
So, in order to do it,
- In material master, put $12 into some field
- In CO-PA, create custom value field and put calculation method.
Is it possible?
Yoshi

Dear Yoshi San
Its possible. There are many options, I will describe only 3 here, because the last one is bit lengthy.
Store the 12 usd price in material master field.
1. Use a pricing routine in SD pricing procedure to read this 12 and update it in a statistical condition type. Map this cond type to a VF in copa
2. Use copa exit copa0002 to read it and update it in aVF
3. See if you can create a condition type in SD as a copy of VPRS. Change the condition category. It will be G in vprs. See if reading the price from Planned price field is allowed. If yes, create a cond type and add it in your pricing procedure.
This will be the simplest option
Br. Ajay M

COGS Posting at the time of Invoicing

Hello Experts,
We have a requirement wherein the COGS Posting should happen at the time of Invoicing.
Our requirement is as below.
At the time of Post Goods Issue
Stock in Transit A/c Dr
     Finished Goods A/c   Cr
At the time of Invoicing we are expecting the below 2 entries
COGS A/c                   Dr
      Stock in Transit A/c     Cr
Customer A/c               Dr
          Revenues
We would like to know how to achieve the 2 the above mentioned 2 entries at the time of Invoicing.
Best Regards
Balaji Kancherla

Hi Balaji,
I can give you below direction...
1. Go to OBYC and enter GL Account Goods in Transit for key GBB VAX. So whenever you post PGI, system will post GL Account Goods in Transit.
2. You will have to add two condition typs into your pricing procedure..
ZGDS:Goods in transit (GL Account - Goods in transit)
COGS:Cost of Goods Sold. (GL Accounts COGS)
Importantly, you will have to attach Calculation Routine which will bring the amount posted to Goods in transit at the time of PGI.
Regards,
Chintan Joshi

PGI Date and COGS accounting date should be different

Hi All,
I have a scenario where the client wants to post the COGS account when the material reach to the Customer and on the same date wants to Invoice the Customer, this is required for the Matching Concept of Accounting so that Recognition of Cost and Revenue should be on the same Date.
For example : Order (01-01-2012) --> Delivery (02-01-2012) - material send to Customer and it reach to the Customer on 10-01-2012 --> PGI (10-01-2012) --> Invoice (10-01-2012)
However in India we need to update the RG1 register at the time when we remove the material from our Factory, and to update it we need to do the PGI, and as soon as we do the PGI the COGS accounts will be Debited. Whereas the material will reach to the customer, say for example, after 10 days and then the invoice will be created, so the Posting of COGS account and Revenue account will be different.
For Example (In India) : Order (01-01-2012) --> Delivery (02-01-2012) --> PGI (02-01-2012)(NO Accounting to COGS) - material send to Customer and it reach to the Customer on 10-01-2012 --> COGS entry (10-01-2012) --> Invoice (10-01-2012)
My Querry is:-
1) Is it possible to achieve the above requirement that we do the PGI but do not make any accounting entry?
2) If yes, then how can we recognise the COGS accounting on a later date, when the material reach to Customer?
3) Is it possible through Standard SAP?
4) If standard SAP procedure is not possible, kindly suggest the work-around and basic logic for the same.
For any further query feel free to ask.
Thanks and regards,
Amitesh Anand

Hi Ram / Karthik,
I think VL01N screen Actual GI date can serve your purpose.
Ram
If I change the Actual PGI Date to a future date and do the PGI, then the material document will be posted on the given future date, and so on Current Date (actual date when the material physically move out from the factory) we can not Update the RG1 Register. RG1 Register will be updated on the Posting Date of Material Document, so this will be an Excise Audit Issue.
Further, a report has to developed,
> It should show the list of documents posted to the 'Deferred COGS GL and not reversed yet.
> Based on the customer receipt, the reports should post an entry reversing 'Deferred COGS' GL to the regular 'COGS' GL
I am looking for the same work-around without defeating any Excise Legal norms. How do we reverse the "Deferred COGS G/L" and make the posting in actual COGS G/L, and what will be its implication on Inventory Ledger and Excise Audit?
Thanks and regards,
Amitesh Anand

COGS should not be reflected on delivery

One big customer has just required that all the month deliveries will be invoiced after the month end.
We dont want to have a big COGS at the end of the month. So the request its that deliveries hit a "in transit" account after hitting the usual Inventory and COGS accounts.
Since I only have one step to do it (delivery), I did it directly (delivery hits inventory/in transit inventory), now my problem its that now the delivery account movement does not go throught COGS account, its that a requirement that has to be done?
I also created the invoice for this delivery and it hits the same accounts as a regular invoice (client, sales and tax)
Is this correct by finance standards? or how can I check that its right?
Thank you,
Carlos

Hi
I am not clear as to what you want
But, if you want to hit a transit account @ PGI and then credit this @ Billing and Debit your COGS a/c - Yes, it is possible
You need to create an accrual key and use it in your SD pricing procedure.. your SD consultant will know how to do this
At COGS - Transit a/c will be Dr and Inventory a.c will be Cr
At Billing - Customer a/c Dr and Sales a.c Cr... Apart from this, COGS will be Dr and Transit a/c will be Cr
If this is what you want, it is possible
Regards
Ajay M

Movement 531 in COGI

Hi,
In BOM we maintain by-product with –ve quantity.
After confirming production order with CO11N, I can see one of material stuck in COGI with movement 531 but –ve quantity (eg: 15.5-). As per my knowledge system never move material to COGI with –ve quantity.
I tried number of scenarios with CO11N but didn’t able to move material in COGI with –ve value.
My question is how it happen? Can anyone suggest procedure/way to simulate this scenario?
Regards,

Hi,
For additional information, I already checked SAP note 126346, which says:
In general symptom (error M7192) can occur if changes are made on the component overview.
I tried by doing changes in component overview also tried in verious other ways but no success.
Please suggest.
Regards,

Condition Type for CoGS

Dear SD Gurus,
Is it possible to transfer the Cost of Goods Sold (CoGS) amount to a condition type? Can I use EK01 or EK02? Or any idea?
Thanks,
Soo

VPRS Condition type to transfer can be used to transfer cost of Goods Sold price.
The condition type VPRS goes into the valuation segment in the material master and determines from this the standard price or average price.
Settings in Customizing
The condition type VPRS is labeled as a statistical condition in the pricing procedure.
Using the condition category G, the condition type VPRS goes into the valuation segment of the material master and determines from here the standard or average price.
The condition category S always accesses the standard price whereas condition category T always accesses the average price.
The profit margin is determined using the calculation formula 11 assigned in the pricing procedure. In this calculation formula the cost price is subtracted from the subtotal of net value 2.
Regards
Prashant

COPA COGS updation issue

Hi Experts,
COGS will get posted to FI at the time of GI and it will get updated in COPA at the time of Billing.
Here at the time of GI no FI document got posted and at the time of billing COGS not posted to COPA.
Please help me.
Thanks,
vani

1.     Release the std cost for this material or maintain a price through MR21
Ans:As I said no price they have to release
2.     Check if VPRS condition type is there in pricing procedure.. Check with your SD consultant.
Ans:VPRS is getting picked up in sales order but if I go to analysis there is error it says Error in quantity/value determination.
3.     3. Map cost components to value field in KE4R.. I assume you have completed all settings in IMG > COPA > Master data > Valuation
Ans: Settings are fine in KE4I and KE4R.

Project COGS question

Hi Dina,
We have the following situation: -
This is about a barge construction scenario - say, there is a contract of building 10 barge. We create one master project and 10 child project for each barge. Costs get collected over the period time against each project and accounting entries are made. Costs will go to WIP account.
Once say a barge is ready to be delivered, the costs for the corresponding project should be charged against cost of goods sold account.
How can we achieve this?
Please help me.
Deborah

Hi
The solution could be based on Revenue Based Cost Accrual method described on Projects Billing User Guide.
The basic setup is as follows;
Create two event types, one is called "credit wip" and the other is called "debit cogs".
Setup Auto Accounting rules so the credit account of the events will be based on event type. The "credit wip" event type should be map to a GL account that offset the project WIP account. The "debit cogs" event type should be map to a GL account that is considered Cost of Sales.
Process:
When barge is delivered and you generate invoice and revenue for that item, you will need to enter also a pair of additional events. One event of type "credit wip" for the amount of total cost incurred on the project. The second event will be of type "debit cogs" and its amount should be negative amount of the first event. As a result, accounting will move project cost from WIP account in GL to COGS account in GL during the same period your project earns its revenue.
I have described the process as a manual procedure. You might consider automating that by developing your own billing extension, or utilize Oracle delivered extension for Revenue Based Cost Accrual.
Dina

Capturing COGS in COPA without VPRS and Costing Keys

Hi all,
We have 20 branches selling across india and corporate office is controlling all
the branches.
So when billing is done thru a particular branch, Corp. Off does not want branch people to view the cost of goods which is captured thru VPRS in condition screen of billing document. So VPRS has been removed from pricing procedure.
In the above scenario we can transfer COGS using costing key and transfer the standard cost to COPA.
But for the materials for which there is no standard cost (like trading goods) how the cost of traded goods will flow to COPA without using VPRS condition.
Please help me out.
Regards
Ramakrishna

Hi,
Good morning and greetings,
For trading goods, normally a purchase order should be prevailing for procuring the same and selling it to the customer with a markup...When you do the goods receipt using MT101, using a substitution rule you can transfer the cost to the profitability segment which is product hierarchy and you can capture the cost of the material without a VPRS pricing condition and a standard price in the material master.
Please reward points if found useful
Thanking you
With kindest regards
Ramesh Padmanabhan

How to change COGS at movement type in SD modules

Dear Experts,
I'm midst of make some settings for online buyers for our company goods. We call this as eSP process. Below I explain more in details how it works before go to my issue. This may help you understand well about this issue.
Exp: customer - EP-ZSB277
Stor. loc : 10TP
Stock available : 10 pcs (t/code: MMBE)
Material : 3100010223 & moving average price (MAP) RM10/pc
1. SO : ZEI1 (SRS)
- qty: 1pc
- outbound delivery : YEI1
- billing : XEI1
- movement type : 631
- material movement : 10TP qty 9pcs (stock reduce) & customer consignment stock EP-ZSB277 qty 1pc (stock increase)
since this is online business, user do Billing once customer place the order BUT that material still at our premises under special stock (customer consignment stock, NOT at stor. loc. 10TP) until sufficient stock to make delivery
2. SO : ZEF1 (replenishment)
- qty: 1pc
- outbound delivery : YEF1
- NO billing
- movement type : 633
- material movement : customer consignment stock qty 0pc (stock out from location) & NO effect at stor. loc. 10TP
user will do ZEF1 & YEF1 when delivery to customer taking place (stock out will happen in system)
So far I managed to do all these settings & all are work fine unlikely COGS.
- COGS happen during YEF1, NOT at YEI1. Honestly I didn't do any settings against this COGS for eSP process so I don't know how this happen & how to change this. In fact I'm wonder how to make this settings in SD modules.
- user said this is wrong coz SRS & replenishment is not happen in same day
Exp: ZEI1 (SRS) today but ZEF1 (replenishment) happen at next month. Before ZEF1 for 3100010223 material to EP-ZSB277 customer, there are high possibilities that 3100010223 sell to other customer & this caused to COGS can be differ.
Now I'm seeking your help how may I set COGS to YEI1 & cancel COGS at YEF1. Please assist me. TQ
rgds,
nema

Dear Experts,
I created few settings such;
SO type: ZEI1
1. OMJJ
- create new goods movement 631 = Z31 (copy from 631)
- account grouping for Z31 u2013 GBB (trans. Event. Key) u2013 Z31 (acct. modifier)
2. Schedule line
- Y6
- tag movement type Z31
- this use at SO type ZEI1
3. OBYC
- transaction GBB
- c/code 3100 u2013 general modification Z31 u2013 valuation class 7920 (base on material master) u2013 g/l acc
SO type: ZEF1
1. OMJJ
- create new goods movement 633 = Z33 (copy from 633)
- account grouping for Z33 u2013 GBB (trans. Event key) u2013 Z33 (acct. modifier)
2. Schedule line
- C4
- tag movement type Z33
- this use at SO type ZEF1
3. OBYC
- transaction GBB
- NO g/l acct set against acct. modifier Z33
Now I create SO ZEI1 & outbound delivery YEI1 u2013 COGS not created with error
Material document 4900349707 does not include an accounting document
Message no. M7082
Diagnosis
The system cannot find an accounting document for the material document 4900349707.
Possible reasons for this are:
u2022     The goods movement has no relevance to accounting. Therefore, the system did not generate an accounting document for the material document.
u2022     The material document is a document that was posted before Release 2.1. Such documents must be converted so that the system can find the relevant accounting document.
u2022     The procedure for the subsequent calculation of value is not active in your system. For further information, refer to the documentation on the program for valuating goods movements: RM07MWBU.
Procedure
u2022     Choose Continue and then choose another function.
u2022     Find out when the material document was created. If the document was created prior to the Release changeover, ask your system administrator to carry out the conversion of the documents. The individual steps required for document conversion are described in the Release Notes for Release 2.1B.
But when I created another SO ZEF1 & outbound delivery YEF1, system give error during PGI. Actually I didnu2019t set any g/l acct for acct modifier Z33.
Account determination for entry CNI GBB 3100 Z33 7920 not possible
Message no. M8147
Diagnosis
The system did not find an account for this transaction. This means that the account determination for key CNI GBB 3100 Z33 7920 is not maintained in MM Customizing (Valuation). The key is made up of:
u2022     Chart of account
u2022     Transaction key (= Posting transaction)
u2022     Valuation grouping code
u2022     Account grouping code
u2022     Valuation class
System Response
The system cannot update a G/L account for this transaction. You cannot post the transaction.
Procedure
Contact your system administrator.
If you have the authorization, check the Account determination in Customizing for Valuation.
Proceed
Note
The relevant posting transaction can be found in Table T030A.
1. Well may I know how the system know that this movement Z33 (633) should have acct determination (COGS) & not at movement type Z31 (631).
2. how to change the COGS from Z33 to Z31, even though I did some creation at OMJJ. OBYC & schedule line
3. appreciate if you could help me explain on the 1st error message that I attached on top such release 2.1, release 2.1B , RM07MWBU & others.
Thank you so much for your support so far.
Plz guide me Guru.
Rgds,
nema

COGS posting in Billing level

Dear all,
I have a scenario, where during delivery the posting will be
Inventory to goods in Transit and
during my billing
Goods in transit must be posted in negative value and COGS accounts needs to be updated, But both COGS and GIT must not be shown in the total value of Customer posting.
Thanks and regards,
Sudhir

Hi,
Create a new condition type ZVPRS and make the value of VPRS to flow to ZPRS .
Maintain the condition record with 100% so if VPRS = 100 then ZVPRS = 100.
In V/06 for the condition type put accruals tick mark.
and in pricing procedure put statistical check box and instead of Account key maintain accrual key.
In VKOA for the accrual key maintain the provision account and G/L account.
In VKOA for the G/L mainatin the Goods in transit G/L and in provision account maintain the COGS G/L.
Inventory 100-
Goods in transit +
When billing the accrual key will post
Goods in Transit 100-
COGS +
Regards,
Saju.S

COGS and Revenue Matching

Hi,
I understand there is a new functionality in R12 for COGS and Revenue matching. Did any body work on that? What all the set up for that? Any documentation available other than user guide would be much help.
Thx
Annie

Hi
The COGS is recognised and the accounting document is created during the Goods Issue Posting. This is the result of the MM Account Assignment. The condition type VPRS in the pricing procedure is a statistical condition type useful for arriving at the net profit.
Thanks,
Ravi

COGI Procedure

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