COPA : Cost of sales for trading goods

Dear friends
We activated cost based accounting and made setting in "Define Access to Standard Cost Estimates" to transafer standard cost of material to copa. We have to transfer Variable and fixed part of the standard cost to COPA, to two diffrenct Value fields
And it is woking fine
But when we sell, any purchased goods (having price control V) system asking for standard cost of the purchased goods. Then we are running Standard cost run for that material and we are able to sell the goods.
Please speciy the above procedure is correct, any other procedure is available.
The problem I am facing is suppor today I run standrd cost run for a trading goods and sold the same, today for that material MAP and standard cost is same.
After some time the MAP of that same material is changed and if we sell the that goods, old standard cost of that material will go to copa
How to solve this probelm.
Regards
Bala

For the purchased products, you may perhaps use the condition type VPRS to bring in the material price from the material master.

Similar Messages

Sale order costing for Trading goods

Dear Experts,
My client having retail industry.Client used to sold customers also like outwright customers direct sales not through retail stores. Now business would like to check margin agasinst one sale order through costing. My SAP working enviornment is IS Retail ECC6.0.
1. Is it possible to do sale order costing for trading goods.(Goods p[urchased for all stores not particular customer)
2.Wihtour BOM is it possible?
3.Please forward any user docs ,if possible that costing
Costing sheet like this
1.Trading goods
2.Packaging materila
3.Overheads.Planned
Beat Rgds
Suma

Answerd with Condition type

COGS for Trading Goods

Hi All,
My client is following Non valuated Sale order Costing where COPA is activated.
In the above scenario, cost and Revenue will flow to COPA when Sale order item is settled to COPA.
How about the cost of Trading materials. material are purchased and sold to the customers without any processing.
During PGI, the entry would be COGS a/c Dr
Inventory -trading material a/c Cr
Now i have created COGS as cost element of category 1. During PGI, system is asking for a cost object assignment. But If i assign Cost center in OKB9, i think cost will be posted twice in CO ,ie in Cost center and COPA. Is it correct.
Pls clarify me on this, as I wanted cost to be shown against the revenue in COPA for Trading materials.
2. Discount to customers, is created under CE 12 category. Will this have any impact on FI when discount is given for any sale which is done from FI.
Thanks,
Ravi

Hi,
Thanks everyone for your replies.
1. Trading material are procured , i e for catering to the customer order and also procured to stock and then sale wen customer order comes in.
Hence, I am not following MTO scenario for trading goods. Can you pls let me know how to handle both so that ultimately my cost should flow to COPA with Revenue.
As told, COGS is brought through either Stand cost estimate or VPRS. In our case its through setttlement of Sale order.
For trading materials, it should be through VPRS.
Thanks,
Ravi.

Error in KE27 - run for trading goods

Dear gurus!
i have a error when i run KE27.
Current, my customer don't have production activity. In SAP system, we activated Material Ledger. in period, i wanna run Periodic valuation (KE27) for all trading goods. (Note that we don't have finished good because not have production, customer just sell trading goods)
I configured some steps follow:
1. Define and Assign Valuation Strategy (in this step, i wonder that which valuation strategy is user for valuation for trading goods)
- valuation trategy : 001
- sequence     material costing       quantity field
       10                        x                            VV099
- assignment of valuation strategy
point of valuation                   record type              valuation strategy
    02                                              F                               001
2. Define Access to Actual Costing/Material Ledger
   Costing key - 01
0 legal valuation
1. only trasfer total cost
   periodic a/c line item
3. Assign Costing Keys to Material Types
point of valuation           record type    Material type        Valid to         costing key 1
        02                                   F                 HAWA              31.12.9999       01
Then, after run period closing in Material ledger, i run KE27 to periodic valuation , but system get error:
" Message no. KE435 - Costing key 01 does not exist
In Profitability Analysis, the system tried to valuate by reading a product cost estimate. The Customizing settings in CO-PA call for valuation using costing key 01.
This costing key is not defined "
explicitly, i maintained costing key and assigned this to trading goods - material type.
Please, help to fix it!
any idea is appreciated.

Activating ML is necessary because in my customer's company sell goods at planed price then revaluate value of inventories and COGS at actual price in the end of each of period. So we decide to use standard price control for trading goods and active Material ledger.
end of period, we run period procedure of ML for trading goods, we expect allocation different amount, revaluate inventories and consumption. Run revaluation step of costing run in ML, we revaluate all   ending inventories and consumption transaction except billing transaction. So, we think that we need to run Ke27 to revaluate all line item document in COPA from billing.
so anybody to help me revaluate consumption amount from billing at actual price in end of period?
thanks in advance!

Storage Location for Trading Goods

Dear Experts,
I need to create a different Storage location for Trading Goods.
Process Flow :GRs > Sales order > Deliver > Billing.
Normally in Trading goods we don't do Delivery but in our system we required to create delivery.
So please Give me some idea & Link to make it happen.
Thanks & Regards,
Olet Malla

The nature of a trading good (material type HAWA) is to buy a material from external company, store it, and sell it to customers.
The nature of a finished goods is produce it yourself, store it and then sell it to cusotmers.
So why would one need to use a FERT and exchange the naming if HAWA just does what it is designed for?
if you need an extra storage location for such a material type, then create one with OX09
(please dont create logical storage locations, this just confuses your users, stick to the physical locations)

Adding Cost of Sales for Non-Stock articles to POS Inbound Pricing Schema

Hi guys
I'm working on a requirement to derive the Cost of Sales for non-stock items by pulling the current cost for the site and multiplying it by the billed quantity on VBRP. We could create a new condition type using purchase org, article and site in the condition table and manually enter condition records. However it would be more elegant to copy prices from the Purchasing list or deal prices into new condition types in the POS inbound pricing procedure. However SAP standard doesn't seem to allow condition copying from purchasing to sales.
Regards
Brett

Hi ,
As it happens you need to do this for Non-Stock Articles only.... then you need a routine to do this .
And then in IS -Retail do we not use NETPrice or Final Cost Price to derive the Sales Price ... In that case you get the Cost Price when the Billing doc is getting posted at line level...
Regards
Amitava

GR for Purchase Order for Trading Goods

Hi,
I have a query on configuration for accounting entry for purchase orders for Trading goods.
When i do the GR for Purchase order for a trading good, the accounting entries are,
Inventory Dr
GR/IR Cr
and
Purchase Expenses Dr
Purchase Setoff Cr
I understand that i can configure for the first set of posting in BSX and WRX. How do i configure for the Purchase Expenses and Purchase Setoff.
Please advise and correct my understanding.
Thanks in Advance,
Safi

Hi,
The possiblity for this scenario is
First create the Production order in CO01
Create of Account assinged PO in ME21N with Account assigned category as "F" with Production order
Do the MIGO with respect to PO, then system will directly post the Stock to that Production order.
So in the system GR is done for PO & Goods issue is done for Production order.In this way you can acheive this.
rgds
GSC

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.

Requirement types & requirement class for trading goods.

Dear all,
I am working on a project in which there are only trading goods. Majority of the items are make to order & few are make to stock.
For the make to order scenario, what will be the requirements type & requirements class to be used for the trading goods. Which item category is to be used......will it be TAN or different......
For the make to stock scenario, what will be the requirements type & requirements class to be used for the trading goods. Which item category is to be used......TAN cannot be used here as it will be used in the MTO scenario so diffferent controls.
What control parameters should I take care of while defining the requirements class & requirement type.
With best regards,
Niyaz Sayyed.

Hi,
    As my understanding, You should copy a new requirement class and make the following parameters and its values.
   For Requirements,
      req.transfer is X
      Allocation ind. is 1
      Prod.allocation is X
     No MRP is blank
For assembly
                assembly type is 2,
                 order costing is X,
                 Special stock is E,
                 order type is ZXXX
You can refer to the sap standard MTO strategy 20 to complete your project. This is the most important parts defining the requirements for sales and distribution module.
george.shi

Debit and Credit notes not to update COPA cost of sales when doing price ad

Hi Experts,
Please help me to fix the below issue.
When we correct price adjustments on customer accounts we use debit and credit notes to do these price corrections. We first process a ZCR order type with reference to the original invoice to reverse the transaction and then we process a debit meme request ZDR with the correct details to invoice the customer correctly.
These credit and Debit memo request are purley for pricing problems and do not effect cost of sales. Currently these Debit and credit memos are updating the cost of Sales value field (COS on Market Price - VV013) .
This creates a problem since the credit and debit memo happen in subsequent months e.g. The credit memo is reversed at the old cost of sales value since SAP keeps a reference to the cost of sales at that time but the debit memo creates the cost sales at the new standard cost which is obviously not the same as the original cost of sales. We therefore sit with differences which will not equal FI since FI cost of sales was updated with the goods issue price in the month that the goods issue happened.
We therefore need to zerorise the following value fields when doing ZDR dedit memo and billing type ZL2 and ZCR credit memo billing type ZG2.
Gross Weight in KG VV004
Invoiced Qty KG net VV002
Invoiced Qty in L VV001
Invoiced Qty in L15 VV003
Invoiced Quantity VV005
COS on Market Price VV013
VV001 to VV005 are quantity fields and VV013 is Value field.
Please help me how to fix the issue.
Regards,
Amar.

Hi,
Sorry, I probably confused things by mentioning Revenue. Your settings are correct, with Revenue defined as a revenue element (11) rather than a cost element (1).
With respect to WIP (P&L), I would create it as a cost element, since it represents the absorption of cost centre costs and materials into the production of goods, even though the goods are not yet complete. When the goods are completed they will be credited in CO-OM and debited to stock using a similar entry. The impact of these credits (to WIP or to Stock) is to move costs out of CO-OM into the goods produced (CoGS). In CO-OM, the net result of Costs less credits to WIP/Stock, indicates the efficiency of your cost centres or the accuracy of your standards.
I would also create the manufacturing variance accounts as Cost Elements and settle them back to your production costs centres (or possibly CO-PA if you used it), since they are also a reflection of the efficiency of your cost centres - i.e. if a Cost Centre manager is not achieving the standards, (s)he should be accountable for the variance, and if you are concerned about reconciling CO-OM and the costs in P&L, you won't reconcile if the variances aren't posted back to CO.
Regards,
Marc

Re-route sales and cost of sales for shipments to vendors.

We are increasing a process where we will ship raw materials to a vendor, they will use this material in production for a finished good that the vendor will sell back to us. It is not sub-contracting, since we would sell these raw materials in bulk. This is also not our normal course of business, so we can not have these shipments mixed in with our regular sales and cost of sales accounts.
We would like to ship these materials out on a delivery and set up a receivable from our vendor, but do not want to record the billing / pgi transaction in regular sales / cost of sales. We have a method to re-route the sales, but from the cost of sales side the possibilities I see are only valuation class.
Does anyone else have a good process for re-routing sales and cost of sales where the process will consistantly re-route cost of sales whenever the sales account is re-reouted?
Thank you!

Hi Elex,
I Appriciate your interest in giving clarity while posting a thread.
Since you are already using REFX and SD is not implemeted, the best option is go a head with REFX module only.
Try to create a saparate Contract type as "Real Estate RES. Sales" and create various conditions related to "Sales" based on your business requirement, (Because we dont have any special pricing procedure to adopt in this ).
As per my understanding you can use the below conditions as an example :
RE Sale Price
RE Sales Installment
RE Sales Discount
RE Sales Commission...etc. based on your pricing you can add the conditions.
All the above charges you can make as one time charges based on your business requirement except Sales installment.
Even though rental objectis sold but the propery is located in your premises you mught have provideing some services to the sold property as well, so you can add one more condition type as
RE Common maintenence / Annual maintenence charges( which is recurring ).
Adopting this process in REFX module will be one best advise for RE SALES.
Based on your requirmeent you can integrate the REFX with PS ( for new devolopments / constructions / porjects ) & Pm modules for services.
Since you are already using REFX leasing process its like entention of the existing process.Hope it may helps you.
Regards,
Subbarao.Narne

CIN-Pricing Procedure for Trading Goods

Hi Gurus
Need yr expertise... Currently we have trading goods process which do not require any excise duties but VAT or CST is required.. Could you pls advise what will be the best pricing procedure to be used as the proposed pricing procedure by SAP (JFACT or JDEPOT) cannot be used as it will propose excise invoice?
If we do not maintain any excise duties in J1ID, system will not prpose any excise duties if we were to use either of the suggested pricing procedure but we will hit a warning message that excise duties are missing in J1ID..
How can we avoid this and what will be the best pricing procedure which do not require excise duties but sales tax is required?
Rgds..Vinz

Hi Vinz,
you can make your won pricing proced.
e.g. ZMKTPRICE
here you can use your regular condition type what you have defined.
e.g PR00-Sale Price
K007-Discount
MWST= 4% or 12.5 (PR00-K007).
I think this will help you.
Best Regards
Sainath

Cost of sales for profit centre accounting

Hi all,
we are running SAP R/3 vers. 4.7.
We have set up cost of sales in finance (FI), which means that we can report by functional areas for a company code. Next step requested is to have a P&L statement structured by functional areas for profit centers.
Is that possible? Can someone advise how to do?
Appreciate any comments and suggestions.
Kind Regards
Reinhard Wiggers / Ahlstrom

Dear Nizamkz
As you would be aware, the condition type for Cost of Sales is VPRS.
Normally, in pricing procedure, we set this condition type as statistical with Subtotal as B and Requirement as 4.
While creating sale order, you can see this in condition tab with the cost fetching from material master Accounting1 tab.
This inventory cost is updated as and when you do PGI which you can see in MB51 where the delivery document reference will be displayed against each and every item you PGId and alongside will be the item cost.
thanks
G. Lakshmipathi

Purch. Req. to COPA link causing problems for PO Goods Receipt

A problem just started occuring in the past week and a half where our Warehouse staff could not receive in goods due to error: "Complete PA transfer structure FI".
What I have found out is that when a Purch. Req. is created with Account Assignment "F" (Internal Order - GR), the corresponding EKBN segment is being created with a Profitability Analysis segment ID (EKBN-PAOBJNR) and the Functional Location field (EKBN-FKBER) is left blank.
Previously, the PA Seg ID has been blank and the Functional Location fields has always contained a value.
This COPA link issue is causing havoc in our Receiving department and I can not find if there was a configurator's transport that caused it (no is fessing up to anything), or if a customer in the MM system set some type of flag -or- is some G/L Account was set up incorrectly that is causing a link to COPA when the PR eventually gets received into inventory.
Help.

I have checked the KEI2 before and for our Assignment 30 we have "Other Costs", and in the "Source" for the Assignment Lines for #30, we have defined a Group (OTHERCOSTS).
This group or set contains the Cost elements which we now have to add to, every time we come across a new cost element or G/L account that is assigned to a PO with line items of Account Assignment Category "F".
The problem is that approximately 3 weeks ago if a PO was created with type "F" line items and the G/L account (cost element) in the Account Assignment portion of the PO was not one that was in the OTHERCOSTS Group/Set ... we had no problem doing the Goods Receipt of the PO -AND- a PA segment was created as well.
For now, we are just adding any new Cost elements to our OTHERCOSTS set if the need arises.

Price Control for Traded Goods

Hi
Can you please suggest what shld be the price control for the Traded Finished Goods
Which is the better option S or V
Regards
Ash

Hi,
Would always prefer price control V- Moving Average Price, because most of the time for stocks, the stocks are valuated at the real price of procurement.
Standard price can be opted for FERT material, where most of the time the prices are not fluctuating.
Anand

COPA : Cost of sales for trading goods

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