COGS(cost of Goods Sold_

Hi Expert,
Can anyone help with how COGS is calculated in SAP Business One...
Rds
Pawan

Hi Pawan,
Please check below links.
COST OF GOODS SOLD
Calculating Profit of COGS - different ways of calculating
cost of goods sold
Hope this help
Regards::::
Atul Chakraborty

Similar Messages

How to use COGM ( cost of goods manufactured )

Hi my company is a consumer goods ( dairy product ) manufacture. I 'm interested to use SBO.
I have installed a trial version, and see the process on the SBO using sample database ( OEC Computer ). There is a GL account for COGS ( Cost of Goods Sold ), but why i can't find COGM account? is it possible to count COGM on SBO? Is there any add on that can solve this problem? And do SBO suitable for manufacture?
Thank You.

Hi.......
All those will be taken care by COGS concept.
For this you need to Plan the Labour and Overhead cost at the time of Production Planing stage if you dont want to include in Bill of Material.
the description for your quesry would be
COGM = Direct Raw material Cost + Direct Labor Cost + Factory Overhead + opening Work in Process inventory - ending work in process inventory
During production Plan COGM will be Child Component Purchase CostOverheads (as service item with standard cost)Cost of WIP
COGS = COGM + Opening finish goods inventory - Ending finish goods inventory
During Sale COGS will be COGM+Opening
Regards,
Rahul

COGS (Cost of the Goods Sold) in OPM reg.

Hi
Can anyone provide the details about COGS (Cost of the goods sold) documents/set up in R12.
This is very urgent.
Kindly do the needful.
Mail id : [email protected]
Regards
Raj

Hi,
1. Cost of manufacture of a Product is what the value of goods sold or Cost of Goods sold (COGS). Either, you use the SAP Costing module (CO-PC) to let SAP determine COGS or you can manullay input COGS into material master fields (Standard or Moving Average) in Accounting view of Material master. In either case, COGS is stored in the material master valuation (Accounting) view.
2. You mean in a COGS? Whatever costs it takes to manufacture a product is included in COGS, for instance Material cost, Labor cost etc.,
Hope this helps.
PS: There is lot of documentation available online SAP help protals and please refrain from using this forum for asking such basic questions and restrict to only questions of clarificatory in nature or issue based questions.
Make an effort to read the SAP help documentation for all your basic questions.
http://help.sap.com/saphelp_erp60_sp/helpdata/en/80/ea89395eb58c4f9d0c3e837cf0909d/frameset.htm
Mods (Moderators) will lock your threads, if you continue to ask such basic questions, so no one can reply to it.
Edited by: Pradeep kumar Athmakur on Feb 27, 2010 12:41 AM

Cost of goods manufactured vs COGS+ Material ledger

Hi Experts,
My company is implenting Material Ledger. They want to see the actual cost of goods manufactured. We are able to develop the actual cost of goods sold in COPA. The required report is to show:
1- Direct material used at standard + variances (price + usage) to give the actual.
2- Direct labor (standard + variances = Actual)
3- Manufacturing overhead ( standard + variances = Actual)
Attached excel file is showing the requirement.
Your guidance to develop this report by any means (Report painter, BI, other).
Regards
Ahmed Zain Hassan

Hi Ahmed / Ajay.
1. In order reports KKO0, you dont see the revaluation of ML, as you said Consumption and Activities are revaluated at Material level, and as far as i know, theres no way to add records that represent the revaluation.
2. The easy way to have a Order Report revaluated at actual cost is with LIS(Logistic InfoSys), creating a Z infostructure (eg copy lis S027) that store consumption and activity QTY, and a user exit that read the actual cost of consumed materials (depending if this is V, S2, S3) and activities and revaluate. In LIS, there are standard way to "re-post" or repopulate the infostructures. This LIS can be reported with the standard functions (ReportPainter, quers on SQ01), or create a Z tcode that show the info stored in the way you want. Problem: Not all know how to customize LIS, and also you need code in the exit.
3. In my country (Peru), there are lots of companies that develop a Z Kardex valuated at actual cost (because, is a legal requirement), and also create Zprograms that calculate the order at actual cost (indeed, i create this reports twice). Its a bit complex, but not impossible and depends on custo EG if you have multiple valuations, you need to write code in order to get the infor for this specific valuations.
4. About COPA, you can post to copa the Actual Cost Component Split calculated by ML. In this CCS, you can identify the Labor, Direct Materials, and overheads. You have 2 options, You can post the delta to the original field or have an aditional field that store the difference. This stuff is done in KE27, i see 1 example in the SCN (i guess i bookmarked). Its important to understand you dont have the detail of the delta per consumed material, just an agregated value.
Here is the link
http://wiki.scn.sap.com/wiki/display/ERPFI/KE27+Periodic+Valuation
5. There is a new ML DrillDown report functionality. Indeed, i couldnt spend time analizing the solution (my test system is with EHP5 and dont plant to upload the OSS), but i guess this is the future. You can look for info with tcode KKML0 in the marketplace, also check this oss 1639462 - ERP accelerators: enhancements in ML drilldown reporting
My questions:
What you want?
+ Order Report, i mean Cost detaild per Order? The Actual CCS por order?
+ Material Report? I mean, the monthly average of a Fert, and its CCS ?
+ a PA Report, that show Sales (Incomes), and Costs per matiral , split by Direct, Labor and OverHead?
Arturo.

LOADING ADDITIONAL COSTS (change matches revenue cost of goods in Stock and

Problem:
we must add the cost of goods of the raw material (for which was made a check invoice) of the costs, which are arising and charged by different suppliers (transport, freight, insurance, etc. ..). These are already included in FI with fb60.
The result should be:
- From the consignment of goods entering, add (only in Warehouse (STOCK), NOT IN ACCOUNTING ') cost accessory
- Do not change the quantity
- Having the total cost of stock
- Exploiting the average cost to FIFO must consider the total cost after additional adjustment
Example:                                                                                data
ME21N: purchaise order No. 321 = article 1000kg a price of u20AC / kg 2.30          01/07/2008
MIGO: goods receipt PO confirms price quantity x (u20AC 23,000) batch 298          07/07/2008
MIRO(enter incoming invoice): Check invoice OK per (u20AC 23,000) batch 298       07/08/2008
Invoices received for costs Accessories:                                                                08/08/2008
FB60: transportation bill on all'purchaise order above cost u20AC / 0.11 kg
0.11 * 1000kg = 110 recorded in cost and accounting of stock.
In accounting, the cost has been reported, in warehouse I need to reverse (add) u20AC / kg to 0.11 initial cost of u20AC / 2.30 kg without adjustments in general accounting, but only in warehouse value and not in the quantity.
So in the end I should have:
batch n° 298 - kg 1000 at a cost of u20AC 2.41 (2.30 +0.11) for the year 2008. How should I do?
thanks

Hi Rahul,
In My GRPO in all there are e items in 2, 3 and 4 qty respectively.
During GRPO:
Finished Product=149610
During Landed Cost:
Finished Product= 35764.22
So (149610+35764.22)/GRPO Qty (9) = Per Unit Cost during GRPO (20597.135)
Now when you sale against above GRPO then
you COGS Will be
In my invoice i sold all the above items in qty 1 each so
COGS= Per Unit Cost during GRPO ( 20597.135) * Sales Qty(3) Dr,
Finished Product= 32634.71 (CR) does not come to this
So this Finished Product 32634.71 (CR) is nothing but Per Unit Cost during GRPO*Sales Qty
Am i doing something wrong ?
Thanks
Malhaar

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 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 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

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!!!

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 account determination by customer type (inter-company)

We have a business need to separate the the cost of goods sold be customer type. Specifically separating the inter-company cost of goods sold from the 3rd party cost of goods sold.
The standard COGS account determination in GBB/VAX only allows for differentiating between material valuation class.
Has anyone attempted this before and what method worked?

For those who may need an answer to this, our solution was the following:
1)       Created new types for SO, SO Item, Sched. Line, Delivery, Delivery Item, Billing type
2)       Created new Pricing procedure
3)       Created new movement type Y61/Y62 modeled after 601/602
4)       Mapped Y61/Y62 to account modifier ZAX.
5)       Mapped GBB/ZAX to the new account.
Benefits, they now have better view of the orders going inter-company. It is flexible enough to adjusting prices for intercompany separate from standard orders, even though for now it is a straight copy of cost. They are able to remove the sales/use tax, from the calculations. They are able to plan with these orders separated out. Plus, this will standardize their process for inter-company.
Hope this helps someone.
Cheers!
Rick

Cost of goods sold for trading goods

In my company Cost based copa is configured.
We do manufacture and sale the goods, also we do trading to goods. for manufacturing goods the standard cost estimation is released but for trading we are not doing std cost estimation. In SD pricing procedure VPRS condition is incorporated to get cost of good manufactured. Now i want the cost of goods sold for Trading material to flow to co-pa.
How do i do it?
Do i need to create and release the std cost estimate for trading material? or there is any way i can manage the cogs to flow to co-pa actual cost.
Regards
Sanjay Petkar

One way is certainly to create standard cost estimates for the purchased products. Depending on your costing view qty structure and MRP view procurement settings you can use either CK40N or costing without qty stucture.
If you want moving average, then you need to exclude the purrchased material type from looking for a cost estimate in COPA, and then you need to link VPRS to your cost of sales key figure in PA.

COST OF GOODS MANUFACTURED IN COPA - MARGINAL COSTING?

Dear members,
I need to confirm the following:
COPA provides profitability based on Cost of Sales and not Cost of Goods Manufactured (COGM) for the period.
I need to confirm if this is possible in a COPA report:
SALE as per Billing
COGS:
Material Costs (as per costing key settings in COPA) relevant to sales
Activity Costs:
Labor (cost for the period)
Overheads (cost for the period)
For activity cost if I take the data available from the value fields, it will be relevant to Cost of Sales and and not COGM.
Firstly is it possible to call up cost elements and cost centers in COPA report painter (costing based COPA)? If I can, I take this cost as posted in cost element (primary) and cost center (for my overheads and labor costs) then it provides me cost for the period. But will it show me that cost by SKU (Finished Material)?
If the above is not possible please suggest how can I get Marginal Costing in COPA?
Regards.
MAK

Hello MAK,
Right, you can use both form of reporting simultaniously. No consequenses, but every time ou need to change the type in KEBC.
But while getting requirement from client you need to make sure which type suites the most. This will yield better report.
To achive Marginal costs results you can go for the Costing based report. becase you need to analyse the pattern of change of total cost over period of time.
Ex: Period 01 Period 02 Period 03 P............................
Total revenue:
-Total Cost :
Contrbution Margin:
Hope this helps
Regards
Ajith

COGS(cost of Goods Sold_

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