COGM and COGS

Dear all,
I have one question regarding this COGM and COGS.
Step-1: Goods reciept from production order :
the entry is :
FG Inventory a/c Dr
To COGM a/c
Step-2: PGI to Customer
COGS a/c            Dr
TO FG Inventory A/c
if above entries are correct then when COGM and COGS A/C will get nullified. or else what is the actual concept.

I have one question regarding this COGM and COGS.
Step-1: Goods reciept from production order :
the entry is :
FG Inventory a/c Dr
To COGM a/c
Step-2: PGI to Customer
COGS a/c Dr
TO FG Inventory A/c
if above entries are correct then when COGM and COGS A/C will get nullified. or else what is the actual concept.
1. In Ist entry goods are moving from production department to store department that includes only manufacturing cost
2. in 2nd entry goods are moving from stores it inclues selling and admin expenses i.e, delivery to costomer.

Similar Messages

  • Differences in cogm and cogs

    Dear all,
    I would like to seek clarification.
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    2) COGS is more on standard cost. May I know the difference between cogm and cogs, is going to where?
    3) COGM and COGS is based on standard cost estimation. correct?
    Thanks

    Hi,
    1)     The actual material consumption, production expenses will set off against COGM. Correct? May I know where is the difference going?
    It is true that actual material consumption and production expenses will setoff against COGM.  Difference is a indirect expenses/overheads that is going to costing.
    2)     COGS are more on standard cost. May I know the difference between cogm and cogs, is going to where?
    If you are using standard price in FG material master, then COGS = COGM if production and sale is happening in same month. If production is happening in one month and sales are happening in another month then there is a possibility that COGM and COGS will differ that will be in price difference account.
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    Here: COGM= 100 *10 =1000
               Price Difference= 100 * 2 = 200 ( Cost estimation FI entry)
               COGS = 100 * 12 = 1200
    3) COGM and COGS is based on standard cost estimation. correct?
        Correct.
    Thanks and Regards
    Binoj M D

  • Consumption vs cogm cs cogs

    Dear All,
    I would like to get advice of the below. I know they are inter related.
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    2) consumption happened on raw mat used and point 3 where misc expenses is credited. correct?
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    hi,
    OGS- Cost of Goods Sold
    COGM - Cost of Good Manufactured
    SAP passes the following entries:-
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    Inventory FG Dr
    CoGM u2013 FG Cr
    2.     For sale of FG , stock removal entry
    COGS u2013 FG Dr
    Inventory FG Cr
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  • Auto selected G/L Account and COGS Account by CardCode then ItemGroup

    Hello,
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                   WHEN 'High Tech'
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                        CASE T3.[ItmsGrpNam]
                             WHEN 'apple'
                             THEN '421000000100101'
                             ELSE 'XXXXXXXXXXXXXXX'
                             END
         ELSE 'XXXXXXXXXXXXXXX'
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    Edited by: Luis Molina on May 3, 2011 5:34 AM

  • Sales BOM inventory and COGS

    Hi all
    If a sales BOM is on an AR Invoice, I want to hit COGS and inventory of its components, not of the parent item. This used to be the case with an earlier SAP 2007A release. However, when we upgraded to a new patch 35, this has changed. Now when a sales BOM is sold (AR invoice), for some reason it doesn't hit COGS of its components, but of the parent item.
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    item 3
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    Hi Simon
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    Kind regards
    Peter Juby

  • Costing COPA and cost element category '1' for Revenue and COGS

    Hi,
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    I know that in a perfect world it should be '11' for revenues and '12' or no cost element for COGS, I just hope we can leave CE category '1'.
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    Hi Ajay,
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    Hi Kevin...
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  • Wrong Calculation of  Sales & Administration Cost and COGS

    Dear Sir,
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    To explain it further , say Material Cost is 100 and Labour Cost is 40 . Over-Head defined on Labour is say 50% .
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    COGM                                    --->   140
    Sales & Administration Cost    -
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    Regards
    Sonia

    Hi
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    In the Overhead rate you have to mention the labour Row correctly.
    Also check the costing variant whether correct costing sheet has been assigned or not
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    Ansuman

  • Impact to p&l on cogm and wip

    Hi,
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    +Work in Process Beginning Balance
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    DR WIP (production) 5,503.99
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    DR Price diff. fg 87.68
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    CR WIP (production) 1,576.02-
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  • Landed cost and cogs

    hi,
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    rgds

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    I Need the report cointing following based on month & Business partner
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    Amitesh Anand

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