Cost of good sold (COGS) in planning

Hi,
Can someone please guide me how to estimate COGS for a product? Thank you

Hi Pramila,
Please click on below link for concepts and details of COGS and its functionalities.
[COGS|
Appreciate if it is helpful to you
Thanks
Vetri
Edited by: Virendra Pal on Mar 8, 2010 9:16 AM
SAP Help link removed

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Cost of goods sold (cogs) for non-shippable items (intangible items)

Hi Experts,
Can anyone please help me on this issue for shippable item we can check in material transactions--distributions for cogs account and cost of an item. But how can we check the cost and account for non-shippable items (intangible items) with out using the items and item cost form.
Thanks in advance,
Christ.

Hi,
You need to replace the join MSI.SALES_ACCOUNT(+) = GCC.CODE_COMBINATION_ID with msi.cost_of_sales_account(+) = GCC.CODE_COMBINATION_ID to get the COGS account. Currently you are getting sales account not COGS.
Thanks
Vishalaksha

Cost of Good Sold (COGS) in Project

Dear All
What is concept of COGS calculate in Project? How it calculate for Material & Services? When the order is complete, the Material stock is transfer to the customer site at this point no COGS should be recognized. When the installation is complete for services, customer will recognize the COGS and the Revenue in my books.
Regards

Hi Pramila,
Please click on below link for concepts and details of COGS and its functionalities.
[COGS|
Appreciate if it is helpful to you
Thanks
Vetri
Edited by: Virendra Pal on Mar 8, 2010 9:16 AM
SAP Help link removed

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 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 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

Substituting Cost of Goods Sold Account Profit Center

Hi
I am using Sales Order substitution to change the Profit Center according to Sales Org + Product Hierarchy + Customer Group + Acct Asst Grp. This perfectly replace the Profit Center in Sales Order. The Profit Center from Sales Order is perfectly flowing to Outbound Delivery.
While doing PGI, in accounting document, Cost of Goods Sold line item is not getting the profit center from outbound delivery. It post COGS line item with Material Master profit center. We want profit center of Cost of Goods Sold line item is same as Sales order / Outbound Delivery.
I checked SCN, everyone provided the solution of using FI Substitution to change the Profit Center of COGS line item.
Is it any other way it can be achieved? if FI Substitution is only the way, can anyone provide the sample code, so that it can be developed fast.
Thanks
Venkat Ramachandran

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 - 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.
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Su

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 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.

Modifying Cost of Goods Sold Workflow

I am looking for suggestions or an example of using the OM Cost of Goods Sold Account workflow to modify the COGS account. Basically, I need to change 2 segments with the corresponding 2 segments from the customer bill-to Revenue ccid.
An example or suggestions would be most appreciated.
I thank you in advance.
Tom

I need help experts!!!

No COPA document for Cost of Goods Sold

I am using both account-based and costing-based COPA. All transactions from SD billing and FI are posted to COPA. However, document type WL (goods issue/delivery) does not create a profitability analysis document even if the profitability segment in the accounting document is filled up with values for the goods issued.
I have also assigned condition type VPRS as a value field in KE41.
What should I do to post the cost of goods sold to COPA?
Thanks,
Agnes

Hello Agnes,
As far as Account-based goes, you do not need value fields, as account-based uses GL accounts to post in CO-PA. So, there is no need to do mapping in KEI2.
KE4I and KEI2 should not have the same mapping.
It is important to keep in mind that Cost-based uses value fileds, and that COGS gets posted at time of billing (whereas FI gets the COGS at time of Goods Issue).
In Account-based, GL accounts are being used, and COGS is posted in both FI and CO-PA at the same time, that is at Goods Issue.
Hoping this helps!
Sylvain

Cost of good sold (COGS) in planning

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