COGS IS COST ELEMETN OR NOT

hi
i have read all the previous forum on cogs is cost element or not i did not got a clarity.
in MTS COGS is should be not a cost element if GBB vax
in MTO COGS is should be a cost element if GBB VAY.
but what in case if we have both scenario MTO Or MTS. As i have both
i have mistakenly created COGS As a cost element in quality server it never thrown any error during billing but when our sd guy is doing inter company sales it thrown error it should require co object.
what would be the consequences if i maintain in okb9 as it is asking in co object.
what do i need to do in this case
Please suggest me
thanks in advance
kareem

HI Sridhara Rao ,
thanks for our reply
i have maintain COGS in okb9 aganist COPA.
but when i have both scenarios what i need to do
do i need to maintian one cost of good sold in vax which is not a cost element.
and another COGS VAY which is as cost element.
do i need to maintain both or only one is enough.
if one is enough i need to maintian it as cost element then what would be the consences.
thanks
kareem

Similar Messages

Cogs-is it cost element or not

hi
COGS should be taken as cost element or not, it takes- what is the costobject and shall i send to copa or not
sowmya
Moderator: Please, search SDN

Hi,
Make COGS as CE in MTO scenario only (GBB-VAY) for bringing to COPA.
If it GBB-VAX do not create it as CE
regards,
neeraja

Inter company COGS and Cost Components in COPA

Looked at so many threads but couldn't find a proper answer.
Scenario: Company B in Canada books a sales order, delivering from a Plant in Company A in US. US bills Canada at Cost + Mark up.
In US:
On Goods issue COGS is booked based on std in US (say $10)
On Inter company billing - (Cost + 20% mark up) Inter company receivable is $12, this triggers a payable on Canada side.
In Canada:
We can have $12 booked as COGS when Payable entry is created in Canada through IDOC. so Accounting is OK.
How can I have this COGS of $12 posted in COPA ? Somewhere I read to use two condition types for VPRS, but unfortunately we cant do that as we have revenue recognition activated. only VPRS condition values comes through revenue recognition lines.
Since Delivering plant in US has a Standard cost of $10, VPRS is $10 in sales order and COPA gets the cost components from US plant, which is not correct. How can I have the mark up of $2 reflected in Cost components in COPA ?.
Assuming that I create a standard Cost estimate in a virtual Plant in Canada for $12 with two cost components for $10 and $2. Is it possible to manipulate VPRS on sales order to point to standard cost from this virtual plant and create a costing key to bring the cost split from this virtual plant into COPA. Has anybody tried this ?
Thanks in advance.
Krishna

Hi Krishna
1. Does this material always necessitates a supply from US company??
If yes, then your task is easy.. Create a Costing Key and assign to such materials in KE4H... In this Costing Key, do not tick the radio button "Use Line Item Plant as Cost estimate Plant".... Instead, You can specify the default PLANT to be used for reading the Cost Estimates in the field "Specify Cost estimate PLant"
You can use the above solution in case you go with Virtual Plant also
2. Are you saying that the VPRS in Sales order punched in Canadian comp code is 10 USD because the Delivery Plant is in US comp code?
I dont know how does Revenue recog behave in your case and when does VPRS (COGS) flow to COPA.... As you said, VPRS gets the feed from RR, so will manually manipulating the VPRS in sales order help you??
Anyways, the 2nd solution is as below... Few companies have used it
There is an output type in SD called RD04... I may not be fully right here, you can take it as RD0*... Ask your SD guy to identify the right output type
Using this, When you do the PGI in Canadian Comp code,
................. All this happens in background automatically...............
you can create a Virtual STO on USA Comp code....
USA does PGI and the stock virtually comes in Canadian Comp code
Then PGI happens from Canadian Comp code
................. All this happens in background automatically...............
This is a change in your process... The delivery plant for all practical purposes becomes Canadian Plant (only on paper)... Your Physical process can continnue as Delivery from USA...
This solution was adopted when both the companies were in same country.... Check with your business how far is it possibie for you
3. Last option would be to use valuation exit COPA0002.... I dont know how you would use it considering you have RR in place....
Be very careful in doing this
br // Ajay M

COGS and cost center (by order reason)

hi,
i am confuse of COGS and cost center which assign by order reason
below is my scenario, free sample order will be created for both outside customer and internal department. if free sample order for outside customer, COGS will have after PGI, but internal department using this sample, order reason to assign cost center will be used. DN also require to create.
Then my question is any COGS of sample order for internal department will be created? whats accouting impact. pls advice
thanks

Hi,
Thanks for the quick replies. Our requirement is to post costs to a cost center for some order reasons. (like free samples to cost centers). It is not for preventing costs.
I think the setting in OVF3 may work. I am testing in sandbox client and update if sucessful.
Thanks
Kalyani.

Material COGS as cost element - Is it advisable?

Gurus,
I have set up my COGS accounts also as cost elements of type '11' to enable direct postings to COPA during billing document save (FYI, We post to COGS during billing and not during PGI.) I would like to know what is the downside in creating COGS accounts as cost elements in CO? I would appreciate a little explanation because my knowledge of SAP CO is pretty limited.
Thank you all.
-Murugan.

Hi
Is COGS with Cost element category 11??. It should be "1" and not 11 as 11 is a revenue cost element category.
S Jayaram

COGS as Cost element

Friends,
We have make to stock scenario. We haven't created COGS as cost element. The problem we have right now is in P&L we are not able to match the values of cost of goods manufactured (posting when dr. Inv cr. Change of Inv(COGM) ) and variance. The COGM can not be matched in P&L as off set COGS is not created as cost element. If i create COGS as cost element then i have problem when doing PGI, it is asking for cost object as i created it as cost element.
Please let me know how the process should be. This is kind of urgent.

Hi PV
I would like to give some concepts on this which may help explain the issue raised by you:
1. When goods are issued, SAP posts material consumptions which are flowing into CO with Production Order as cost object. These are reflected on debit side of P&L.
2. Besides using raw materials we also use labour, activities to convert to finished goods. These labour and other expenses are also reflected as expenses on debit side of P&L with Cost Centers as cost objects.
3. In real sense these are not expenses which can simply be absorbed since at the end, the resulting product is a value added material which is converted from raw materials to Finished goods. These 2 items (raw materials & FG) are reflected on balance sheet.
4. So to reflect the increase in value from RM to FG in Balance Sheet (both are debits), we need to have a credit in P&L which is reflected in terms of COGM.
5. Credit to P&L in terms of COGM is off set by debits in P&L in terms of material consumptions, activity utilizations (like wages, power, depreciations etc). Note that this may not be equal because credits in COGM are based on Standard Cost Estimate where as debits are actual expenses which can vary significantly from the assumptions made in standard cost estimate.
The above process is more to do with how we account things in FI rather than having to do with CO.
Hope this explains that COGM is matched in P&L with other expenses like material consumptions, production expenses but not COGS.
6. COGS is something different from COGM. Theoritically COGS will be more than COGM since Sales OH are added on to COGM to arrive at COGS.
So COGS has to flow to CO only in case Sales revenue is also flowing into CO. In such scenario Sales Revenue GL account is created as revenue element with category 11. If this is the scenario then COGS will also be created as a cost element with category 1 and cost object is taken from Sales revenue element it self when you do FG delivery for a sales order.
In the above scenario, the cost objects can be Profitability segment or Sales Order.
Hope this provides some clarity on your question.
Thanks
Satya

Standard cost estimate could not be found for the material

Dear All,
We have 4 manufacturing plants and 30 sale depots. We are maintaining price control (S) for FG and SFG in Manufacturing plants,price control (V) at depots for the same material code. we are getting an error message " standard cost estimate could not be found for the material" while doing billing at depot.
Please give me suggestion.
Your suggestion should be appreciate.
Thanks in advance............
AND
My client want to see profitability at manufacturing plant level and need break up for the COGM. So how can i get the values of depot sales.
please let me know how to do........

Hai
Price control should be S for Depot also. You need to run standard cost estimate in DEPOT after entering additive cost under CK74N for frieght, excise duty etc. To transfer the standard cost from the source plant you need to make configuration in OMD9 defining the receiver and sender combination so that system can pick up the cost from source plant. This special produrement type needs to be asigned in the material masters of DEPOT under MRP 2 view.
Pushkala

CK11n Costing Run does not pull purchasing price from info record.

Hi,
I have material which is a semi finished product (Material type: SEMI) and is purchased from a fixed vendor (specified in the source list).
The costing run does not pick up the purchasing price from the purchasing info record but
instead incorrectly picks up the standard price from the material master (Costing 2 view).
Can you please help me solve this issue?
Thanks,
Ketan

Execute OPL1
or
SPRo>>IMG>>Controlling>>Product Cost Controlling>>Cost Object Controlling>>Product Cost by Order>>manufacturing Order>>Check Costing Variants for Manufacturing Orders (PP)
Select the costing variant in the table from "Change Costing Variant: Overview" Overview Screen
Click Detail Button
Click Valuation Variant Button in the Control Tab
Change View Valaution Variant Detail Screen Appears
In Material Valuation Tab Set Price from Purchase Inforecord as Priority 1 if you want to use Price from Purchase Inforecord for semi-finished product during CK11N
You can list down Priority 2 to 5 depending on your requirement
This would solve your problem
Edited by: Paul Pandian on Mar 17, 2009 3:01 AM

Blocking creation of production order if standard cost estimate is not done

Hi PP gurus,
Can anyone help me in blocking the creation of production order if the standard cost estimate is not done for the particular posting period.

Hi,
I do not think there exist a standart check. You can use exit EXIT_SAPLCOZF_003 to block creation of production order by sending error messages based on any condition.
Regards.

Creation of cost element or not for GBB-VAX,GBB-INV and UMB

Dear Experts,
I have few doubt regarding creation of cost element. Whether i will create Cost element or not.
1) GBB-VAX - used in PGI(Vl02n)We have costing based COPA .whether we will create cost element or not.If i will create cost element then need to be bydefault in okb9 with PSG tick.
2) GBB-INV- Used for Material taging(MI01,MI04,MI07)whether we will create cost element or not.If i will create cost element then what will be my cost object and how i will charge from my product costing.
3) UMB- is used whenever standard price is changed. Shall i create cost element for the same
If yes hen what will be my cost object and how i will charge from my product costing.
Request you to help me on the same.
regards
RR

1) GBB-VAX - No, Goods Issue for sales order with no assignment object and hence without Cost Element
2) GBB-INV- Yes to post expenditure/income from inventory differences
3) UMB- Yes
Regards
KS

POI Information Updates when Costing Changes are not Saved

Hi All,
When you go to the costing screen of a party in Oracle HRMS, make changes to the costing string (Cost Allocation Flexfield) and not save them. Then, exit from the costing form and go to the Purchase Order Information (POI) screen and press Ctrl+F11, the POI information updates to the new changes. It was my understanding that in order for the purchase order info to be updated you need to make changes or "touch" the costing screen and save. I have noticed that the purchase order changes after being in the costing screen even without saving anything. Was this intend?
Thanks,
Naveen Gagadam

The Changes on the Assignment reflect because of the changes on the Costing Screen. This is due to the custom.pll implementation. Is there an event name that I can use for the Assignment form such that the changes on the Assignment screen show up only after the changes are SAVED on the Costing Screen. Here's the code that we are using in the Procedure: Event of the custom.pll
====================================================================================
If Event_name = 'WHEN-VALIDATE-RECORD' then
--     1. Costing checks at Assignment (PERWSEAC). This code copies first 4 segments of costing string
--               to Default Expense Account on the Assignment screen.The Code will perform this function for
-- the first Costing record but no other record.
if name_in('system.current_form') in ('PERWSEAC') then
     Step_identity := 'Costing to Expense Account Population';
               if name_in ('system.cursor_block') = 'COST' then
-- Check if current record is the first record in the block
-- prior to 4/6/05 this code only ran if first costing record. now runs for all and passes
-- whether first record to package. B Wagner
if name_in('system.cursor_record') = '1' then
          lvc2_first_rec := 'Y';
else
     lvc2_first_rec := 'N';
end if;
                    if name_in('COST.SEGMENT1') is not null
               and name_in('COST.SEGMENT8') is not null
               and name_in('COST.SEGMENT2') is not null
               and name_in('COST.SEGMENT3') is not null then
                         lvc2_company_nm     := name_in('COST.SEGMENT1');
                         lvc2_LOB := name_in('COST.SEGMENT8');
                         lvc2_location := name_in('COST.SEGMENT2');
                         lvc2_dept := name_in('COST.SEGMENT3');
                         FND_PROFILE.get('USER_ID',ln_user_id );
     -- It has been assumed that the seperator for the flexfield segments is a period ('.') .
     -- If the seperator is changed then the following line of code has to be modified.
     -- If the number of segments in the flexfield definition is changed then the number of
     -- separators has also to be modified.
ln_assignment_id := name_in('COST.ASSIGNMENT_ID');
ld_session_dt := name_in('CTL_GLOBALS.SESSION_DATE');
smc_customlib.set_exp_act(
                                                                 ln_retcode,
                                                                 lvc2_errbuf,
                                                                 ln_user_id,
                                                                 ln_assignment_id,
                                                                 ld_session_dt,
                                                                 lvc2_company_nm,
                                                                 lvc2_LOB,
                                                                 lvc2_location,
                                                                 lvc2_dept,
                                                            lvc2_first_rec
if ln_retcode = -1 then
     -- b wagner 4/6/05 - raise trigger failure so bad combinations can't be entered into costing screen
     fnd_message.set_string(lvc2_errbuf);
     fnd_message.error;
     raise form_trigger_failure;
end if;
                    end if; -- If costing string is complete
               end if;   If First Record of COST Block
               end if; -- If Block is COST
     end if;     -- For Assignment form.
================================================================================================================
Its the custom package that actually populates the changes in Costing Screen onto the Assignment Screen, but I want to activate this only when I save the changes on the Costing Screen. Right now the changes are seen on Assignment Screen when I hit CTRL=F11 even when I don's save the Costing Screen changes.
Thank You,
Ngagadam.
Message was edited by:
Naveen Gagadam
Message was edited by:
Naveen Gagadam
Message was edited by:
Naveen Gagadam
Message was edited by:
Naveen Gagadam

Cost Center does not exist for a particular period - Solution

We have encountered an error in the subject,
COST CENTER does not exist for a particular period
Solution:
1) Either extend the Posting period for the invoicing date
2) Or enter the Cost Center as PO number in Sales Order
Please do add your comments if there are different ways to solve this error

The Post contains a solution

Plant and Cost Center are not displaying in FI doc. for asset scrap ABAVN.

Hi All,
When we do asset retirement by Scraping using Transaction Code ABAVN, Plant and Cost center are not appearing in the FI document. But, in the master data the Plant and Cost center are assigned for the particular Asset.
When I see the FI document display, the fields Cost Center and Plant are blank. Business Area and Profit Center fields are getting updated.
Can any one help me how to get this Plant and Cost Center in the posted document. Is there any OSS notes for this. I am using ECC 6.0 version.
Thanks in advance for your help.
Regards,
Rajesh

Rajesh
Aditional on me answer.
The systemtakes not the cost center from the asset you have to assign it in OKB9 or to fill in during this posting:
Steps
Click on Simulate, than you see the posting screen:
Click on the line (pk 40)
Click on Goto and Additional account assignment and fill in the cost center whatu2019s in the master record of the asset and post
An other option is to make a substitution to get this information

RE: Cost centre is not updating in FAGLFLEXT table

Dear experts,
During posting we give PSG and cost centre but cost centre is not updating in GL total table FAGLFLEXT as its statistical, in order to be able to update CC in the GL total table what we should activate?
please advice.
Regards,
Chandu.

Hi Chandu.
Sadly, this is the standard behavior of the system. In FAGLFLEXT only arrive real cost object, not statistical. This is explained in oss
964686 - Transfer of statistical postings in CO to FI
If you really nead the Cost Center, you can enhace table FAGL and and create Z field for statistical cost center. This is a common solution.
Arturo.

PO created successfully using BAPI. But G/L, Cost Center are not displaying

Hi,
I am trying to create a purchase Order type limit order using BAPI_PO_CREATE1. PO created successfully. when I try to see the PO using ME23N transaction,in the account assignment tab G/L and cost center are blank. In my BAPI, I am populating all the values in item and account internal tables.
I am debugging all the time and not able to find why G/L and Cost center are not poplulating in PO.
Pls suggest me how to finish this problem.
Thankm,
Ram

Hi,
Are you passing the update flag in POACCOUNTX table?
regards,
Ankur Parab

COGS IS COST ELEMETN OR NOT

Similar Messages

Maybe you are looking for