Consumption vs cogm cs cogs

Dear All,
I would like to get advice of the below. I know they are inter related.
1) Can anyone explain in sequence or chronological order of how the cost from consumption become cogm and cogs?
2) consumption happened on raw mat used and point 3 where misc expenses is credited. correct?
3) which part below is considered as cogm?
4) point 4 credit wip is not considered as consumption. correct?
1 withdraw raw mat from inventory
dr raw mat used
cr raw mat inventory
2 transfer of rat mats into wip
dr wip
cr raw mat used
3 transfer of manufacturing expenses direct and indirect cost
dr misc expenses
cr cash
dr wip
cr misc expenses
4 upon completion
dr fg
cr wip
Thanks

hi,
OGS- Cost of Goods Sold
COGM - Cost of Good Manufactured
SAP passes the following entries:-
1. For goods manufactured i.e. at the time of final FG posting
Inventory FG Dr
CoGM u2013 FG Cr
2. For sale of FG , stock removal entry
COGS u2013 FG Dr
Inventory FG Cr
Hence, the difference between COGM-FG & COGS-FG will represent the change in inventory.
let me know if u need more information.

Similar Messages

Differences in cogm and cogs

Dear all,
I would like to seek clarification.
1) The actual material consumption, production expenses will set off against COGM. Correct? May I know where is the difference going?
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.
Ex: if 100 unit produced in jan 2011 @ 10 and sale is happening at Feb 2011 , FEB cost is 12.
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

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.

COGM Need to be a cost element?

Hai Gurus,
In my client both the COGM and COGS are created as G/L Accounts, we activated the Costing basesd COPA.
The question is weather the COGM is to be created as a cost element in Controlling? We know that the COGS is not to be created as cost element in case of MTS(make to stock scenario) and to be created as a cost elemnt in case of MTO(make to order scenario). In MTO scenario what is the cost element category for COGS is it 11? Please confirm weathert the COGM is to be created as a cost element in both the cases ie MTO and MTS.
Thanks and Regards
Pavan Kumar

Hi,
If you want COGS as cost element better to take it as category 11 . COGM can be created as cost element with category 1.
Regards,
Sreekanth

Cogs cost element

hi,
i read from forum that no cost element is needed for cogs.
"certain expense accounts are not meant to flow to Cost Accounting. Examples include Price difference accounts, variance accounts, and COGS or COS."
1) i still can see price difference account in ka03. why?
2) what does it mean cost element not needed for cogs? meaning cogs directly post to copa? if yes, what tcode i can see it being defined?
thanks

Hi,
1. Price difference account can not be made as a cost element. As generally this account you use to settle your variances to your product cost at the month End and following entry is passed in FI because of this :
Price Difference A/C Dr
To COGM A/C Cr
Generally in CO - PC, you can only get COGM not COGS. As, product costing only have cost of RM, PM, activity rates and Overheads. At the running of Std. cost, it doesn't has sales and dist. charges, which generally are getting captured from SD through condition types.
2. Also in COPA all above mentioend costs come through value fields in CO and sales and Dist. charges come through condition type from SD (connected through value fields).
So, for this reason also, COGS can not be created as a cost element as it can not be assigned to any cost object directly. You generally get COGS in COPA through report (through report painter).
Thanks & Regards,
Taral Patel

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

Overhead and settlement in WIP

Hello,
We have a material and COGM for that is: 2000 and COGS is 2400. But we are updating the COGM only to Material master as standard price.
When we run the WIP and Settlement system is showing 400 as difference and it is going to Price Difference.
To avoid what we have to do.
1) Shall we need to maintain overheads in OKTZ as a inventory?
Thanks
Sateesh

Hi,
There is no relation between COGM and COGS.
What system is doing is correct.
Difference of 400 rs is coming due to difference between actual issue of Raw material and confirmation of Finish Goods.
Check the production order in CO03 and go to cost analysis. there you will get the reason of difference.
Regards.
Shayam

Integration with MM and SD

Hi experts,
tell how to integrate with MM and SD module as t.code i know obyc.but i know how its really work in real time , where GL is assign and what type of GL have to make.its asked in interview , tell me abt valuation class .
thnaks,
arti singh

MM-FI integration will be done in T.Code OBYC. SD-FI integration will be done in VKOA.
OBYC - GL accounts has to be assigned based on the valuation class as detailed combination:
Transaction                   Valuation Class                  G/L Account for
BSX                         as per Material master        INVENTORY POSTING
WRX                                                                  GR/IR CLG
GBB-VBO/VBR/VKA                                                  CONSUMPTION
GBB-VAX/VAY                                                  COGS
GBB-AUA/AUF                                                  ORDER SETTLEMENT
AUM                                                                  ST.TRANSFER
FRL                                                                  SUB. CONTRACT CHARGES
PRD                                                                  PRICE DIFF
GBB-INV                                                                  PHY. INV
UMB                                                                  INV. REVAL
GBB-VNG                                                                  SCRAPPING
BSV                                                                 CHANGE IN STOCK
ZOB                                                                 501 MVT. GR WO PUR. ORD
ZOF                                                                 521 MVT. GR WO PRDN ORD
BSR

Report Identification

How to determine whether the report can be created in report painter or it can be made through ABAP.
Also let me know about this: There is a report in excel for which data is extracted through Trial Balance in SAP. From this system generated data, different reports are made in excel like monthly P&L report total and product wise; WIP and FG report; variance report for WIP and FG; and the complete one having COGS, raw mat, Mfg expenses, WIP, COGM, FG, contribution, Admin & general, selling and distribution.

Hi,
1st of all gather the total requirement.
I hope you can deliver the report with in functional module itself:
COGM and COGS will be possible through COPA.
T code: KE31/KE35 without / with form
T Code: KE30 - Execution of the report.
Try the Report painter option also ...Creation of the report :GRR1 Library:1VK
Still the requirement is not fulfilled then \
you can go for ABAP reports.
Regards,
Pavan Kumar Arvapally

Production orcer MB31

Dear G urus,
when i am doing Mb31 i am getting the following error in Quality server ,it is working fine in DEV.
please suggest me what setting might be missing.
Order 1000003 cannot carry revenues
Message no. KO014
Diagnosis
You have tried to post an order, which is not allowed to carry revenues, under a revenue element (or the system determined the order automatically).
The field "Revenues" in the order type determines whether revenues can be posted to an order or not. Orders carrying revenues cannot be settled to a cost center.
System Response
Order 1000003 cannot carry revenues.
Procedure
You can either
enter a different order.
enter a different cost element (not a revenue element).

Hi
It seems your GL account is wrongly defined as Catg 11 cost element.. It should be Catg 1 cost element i.e. Consumption accounts, COGM account should be catg 1 cost ele
Change the category if allowed or use a new account
Br, Ajay M

MTO cost getting wrongly charged

Hi,
I am doing MTO with sub contracting. The following cost is getting captured against Sales Order-
Cost Of Raw material
COGS
Following component is not getting captured against sales oreder-
Sub contracting Charges
COGM
Due to this the cost of raw material is getting captured twice. I want to captured the -
1. Cost of raw material
2. Sub contracting charges
as and when it is booked.
Sales order is taking cost center as compulsory field and even if I am entering the Sales order in subcontracting charges GR, it is taking it as statistical and booking charges on cost center. Please note nowhere filed status is issue..
How can I book the correct cost as per requirement.
Thanks & Regards

Hi,
In SAP the cost of goods manufactured is composed of material and production costs, process costs and overhead.
Based on your statement "Due to this the cost of raw material is getting captured twice."
Based on my project experiences , few possible reason could be happen as below :
1) Incorrect production execution confirmation due to double confirmation again the order.
2) Incorrect BOM structure - duplicate line item for raw material.
To calculate the COGM and COGS for materials, you can execute a material cost estimate
What you using should be Material Cost Estimate with Quantity Structure.
Choose Accounting --> Controlling --> Product Cost Controlling --> Product Cost Planning --> Material Costing --> Edit Costing Run.
Hope can help you.

A few queries on COPC

Hi Sappers!
I would like to get some pointers on the following issues in COPC:
1. Currently we allocate conversion costs like utilities, repairs & maintenance, rent, salaries between inventory & Sales, General & Administration Expense (shown on income statement/P&L account) How will SAP allocate these expenses between Inventory & SG&A
2. Where would the variance between actual and plan be settled, to COGM or COGS. Is it possible to allocate the variance between both COGM (inventory - Balance Sheet) & COGS (Income Statement)
3. When you get the actual invoices at the month end where this expense/invoice would be coded to, COGM or expense account?
4. The activity types or the conversion costs that are presently used by the business are grouped into: Plant Costs, Sales-General & Administrative (SG&A) costs and Shipping & Terminalling Costs. The business does not want to have many activity types like Power & Water Cost/Salaries & Wages/Repairs & Maintenance/Stores & Spares Cost/Material Handling Charges. The business wants to use only three activity types: Plant costs, SG&A and Shipping & Terminalling Costs.
5. If you produce something and sell all of it in the same month then COGS & COGM for that month will be correct. But if you produce something and sell some part of it in the next period, will COGS figure for the month in which material is produced and the COGS figure for the month in which material is sold be correct?
Appreciate your time!

1. Currently we allocate conversion costs like utilities, repairs & maintenance, rent, salaries between inventory & Sales, General & Administration Expense (shown on income statement/P&L account) How will SAP allocate these expenses between Inventory & SG&A
You can either use Cost sheet for % based and Activity types to allocate overheads to Products.
2. Where would the variance between actual and plan be settled, to COGM or COGS. Is it possible to allocate the variance between both COGM (inventory - Balance Sheet) & COGS (Income Statement)
Variances can be settled to Variance GL Account.
3. When you get the actual invoices at the month end where this expense/invoice would be coded to, COGM or expense account?
Which invoices??
4. The activity types or the conversion costs that are presently used by the business are grouped into: Plant Costs, Sales-General & Administrative (SG&A) costs and Shipping & Terminalling Costs. The business does not want to have many activity types like Power & Water Cost/Salaries & Wages/Repairs & Maintenance/Stores & Spares Cost/Material Handling Charges. The business wants to use only three activity types: Plant costs, SG&A and Shipping & Terminalling Costs.
Coool
5. If you produce something and sell all of it in the same month then COGS & COGM for that month will be correct. But if you produce something and sell some part of it in the next period, will COGS figure for the month in which material is produced and the COGS figure for the month in which material is sold be correct?
You would have change in Inventory for the unsold portion
You might need some training as well in Accounts and Finance
Edited by: Suraj Ramamurthy on Jan 7, 2009 10:48 PM

Automatic creation of requirement for extra consumption in COGI

Dear.
For a production order with a component totally consumed during the backflushing of CO11N I run a new confirmation. The component isnu2019t available , the confirmation is done and the system create for the component an error movement in COGI.
If I see MD04 for this component I donu2019t see any production order requirement for the extra consumption quantity in COGI.
But the planner need to know the quantity that remain to withdrawn.
Which is the reason for the missing automatic creation of requirement for extra consumption in COGI ?
Thanks.

Dear Cris,
Have you manually edited and input extra qty in CO11N
When backflush is activated and Full qty is confirmed
Then if you perform confirmation second time then form where system will again pick the component
Once again check in production order BOM over view and also in BOM what is the qty given
Can you eloborate more in detail what you have performed ( steps required )
Dear Siva,
Just correct me if i am wrong
Regards
Madhu
Edited by: K.Madhu Kumar on Sep 30, 2010 1:10 PM

COGM/COGS in COPA

Dear All,
I have to capture the COGS/COGM in the plant. I tried by linking the cost elements in the PA transfer structure and through direct posting from FI/MM. The values are not getting updated in the COPA. When I run the settlement run only the variance amount has been transferred to the PA structure. How to go forward.
Also I want to capture the COGS/COGM in the Branches also.
Regards
Vasantha

Hi Vasantha
As told to you in the earlier query also. The COGM is transferred to COPA from the Invoice Document (SD Module) when sales is passed on to Accounting.
The COGM would be the standard price / moving average price of the material you are selling.
The config is Controlling->Profitability Analysis->Flow of Actual Values->Transfer of Billing Documents.
In the above config, assign VPRS Condition Type to the Value field COGM/COGS.
Regards,
Suraj

Cost Element Creation against COGM & COGS

Dear Experts,
Some person suggest that while creating COGS GL Codes in FS00 cost element should not be assigned.
According to him if this is done then COGS will flow to COPA and thus COPA profitability report will be wrong.
Can you please tell whether this correct, how ever in our system COGS a/c also maintained with cost element in FS00.
Regards,
Alok

Postings to COPA can controlled through using proper Field Status Groups (FSG). IF you supppress postings to COPA in FSG's then I dont think you can make any postings to COPA. Hence the suggestion given by you may not be true.........

Consumption vs cogm cs cogs

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