Cost of sales in NEw GL

Hi,
Can anybdoy please let me know what is the Cost of Sales ledger functionality in New GL account in ECC 6.0? I tried to find out from our forum list but there is no particular specification on that. Or if any body can send me the good documentation on that that would be really appreciate.
Please help me. It's very urgent. I'll really appreciate your time and help.
Thanks & Regards,
Niki Shah.

Cost of sales accounting compares the sales revenue for an accounting period with the manufacturing costs of the activity. The expenses are allocated to the commercial functional areas (manufacturing, sales and distribution, administration, and so on). Expenses and revenues that cannot be assigned to the functional areas are reported in further profit and loss items, sorted according to expense and revenue type.
With this type of grouping, cost of sales accounting identifies where costs originate in a company. It therefore portrays the commercial purpose of the expense.
<b>For example, you can use a same GL account for salaries, but based on the cost center it is posted, the amount can go above the gross margin or below. Each cost center is associated with a functional area. like Production and Admin.</b>

Similar Messages

Cost of sales accounting in sap classical GL.

Hi Expert,
we are facing problem to know the Material Cost against Sales i.e Revenue for Particular Product. kindly help through which module we will configure so that customer will come to know, while producing the finished goods this much of material Cost, Manpower , Energy as so on occurred till finished goods. Client Manufacturing Automotive Spare Parts for Domestic customer as well foreign. Total 25 Products manufacturing , purchase Raw Material then produced finished goods.
Kindly let me know which Module we will start to config.
Note : we are working on ECC 6 but still NEW GL not activated and Document splitting. we want in existing GL i.e Classic GL.
Urgent Requirement.
Yr immediate response will be highly appreciated.
Kind regards
Pranav Kr. Gupta
SAP FICO Consultant

Hi Pranav
Your requirement can be met by product costing and copa
Standard cost estimate split can be transferred to copa during billing. Your std cost estimate will comprise of raw material, labor, overhead etc. When you release bulling from vf01, system will update cost split also along with revenue
However, this split will be based on std cost. Variances are updated to copa during month end when you settle the prod order... if you want the split in copa based on actual cost, you need material ledger activated
To fetch std cost split in copa, you need
1. Costing key in ke40
2. Val strategy in ke4u
3. Val field mapping to cost components in ke4r
4. Costing key assignment in ke4j or kepc
This is addressed many times in the forum. You can check for the above steps in scn
Br. Ajay M

How to keep the same cost in Sales order and return order?

Hi experts,
When I create a sales order with item cost 100 USD.
Then the cost of item changed and down to 90 USD.
When I do goods return refer to the sales order. How can I keep the same cost (VPRS) 100 USD but not 90 USD?
I made a test the cost in sales order is 100 USD but 90 USD in return sales order.
I want the cost in return sales order is 100 USD.
How can I do?
Thanks,
Lance

Hi,
Let me tell u my understanding of your requirement, after the sales the cost of the item is changed to some thing low than it was in sales order or invoice, in this scenario you need to transfer the cost of the material as it is in the sale order or invoice (which you are taking as reference to create a Return Order), am i right?
If so, you can proceed like this.
In the copy controls of Billing to Sales orders ( F2 to RE) we have the pricing type N assigned to it ( Transfer pricing components unchanged, New Cost) here the system is reading the change of the cost again from the material master. if you don' t want it to read the material master data again we can have a change try with pricing type 'D' (Copy Pricing elements unchanged), and try now.
let me know the result.
hope this will solve your problem.

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

Cost Of Sales

Hey Good People,
I have a client who is having problems with the calculation o Cost of sales.
The Client is a retailer who imports most of his products for local sale. Import and pricing is handled in foreign Currency - USD or EUR, whilst sales is in Local currency
The Company places and Sales Order say for 10 Items at 10 Dollars Each = 100 Dollars.
At time of Purchase order (01.02.09) and GRN (28.02.09) the Local Currency Monthly Exchange rate to the dollar is say 10. Therefore the Equivalent in Local currency (LC) at the time of placing the order is 10 items at 100 (LC) = 1000 (LC). At the GRN Stage, landed Costs are recorded in Local currency = Total is 500 (LC)
Thus the total Item cost in Local currency is Purchase Price (1000) + Landed Costs (500) divided by qty (10) = 15 LC Per Item
All this is recorded within SAP. The problem occurs on Purchase invoicing and recoding/adjustment of Cost of Sales (Delivery/Invoice Item Cost).
As the goods are already in the store, they begin sales 01.03.09 - sales price marked up appropriately to 25 (LC).4 items are sold and the Cost of Sale for this Sales Delivery/Invoice is 6*15 = 80 (LC). 4 Remain in Stock
The client is then sent the Purchase Invoice to pay on the 05.03.09 - here the Exchange Rate has risen to 11. Thus the Invoice is for 1100 (LC) - Equivalent to 100 USD as the order and GRN. This is paid with no problem and SAP Makes Appropriate adjustments - This will reflect in the P& L and the variance reduces overall profitability
The problem that exists is the Sales Analysis Gross Profitability Report in SAP - by Items and by Customer. This takes the Values in the Invoices/Deliveries whose COS cannot can never be adjusted.
The only option would be to spread the additional cost to the other Items and this would result in some items being sold at a loss.
Take the Example above
4 items remain in stock - additional Cost due to Exchange differences is 100, Spread evenly to products = equals 25 added to Costs = New Cost is thus 40 (Old Item Cost plus revaluation). The selling price cannot be adjusted (need to remain competitive/consistent). Thus the remaining four are sold at a loss.
Has anyone encountered this problem ? Can anyone propose any Solutions/Workaround
Your input will be greatly appreciated
Regards,
Michael Mbiyu
SAP B1 Consultant
EIM Solutions, Kenya

Hi Micheal
Your problem is not uncommon, and one cannot expect a system to allow you to change the cost on sales afterwards as this would involve a lot of adjustments. This is normal behavior and the only workarounds would be to block imported goods from sale until the invoice has been processed, or to keep the exchange rate the same from the Goods Receipt to the invoice and allow the exchange rate difference to be absorbed when paying the invoice at the final exchange rate. This can be achieved by using the same date for the invoice as was used for the Goods Receipt.
Is there a reason why the dates of the GRPO and Invoice differ? Usually with imports a Pro Forma Invoice is issued in order to get bank and forex approvals prior to importing goods.
Let me know so I can better understand the timing difference in invoicing.
Kind regards
Peter Juby

Cost of Sales Accouting

Dear All,
Client didn't activated the Cost of Sales Accounting initially and preparing Profit & Loss Account by periodic Method for the last four year.
Now Client want the profit & loss on the basis of Cost of Sales Accouting. We defined Functional Area , assiged to Cost enter, Order Type & GL as per user requirement.
I have the following question regarding the existing master data on which already transactional data posted without functional area. What must I consider about the following cost object
1-Internal order ( Real/statiscal settled , released & completed .......)
2-Production/Process/PM Order( settled, released, and closed.......)
4-Product Cost Collector
Further, our Fiscal year is K4, can we activate the Cost of Sales Accounting from start of Fiscal year, so that the date can be captured completely.. is there any time dependency for activation of cost of sales accounting..?

Shalin
How did you finally solve these issue?
I have the same problem thou i have not yet installed the CoS accounting. I think that you are able to read the functional area form the new total table that is created once the COS Accounting is active. So the BSEG is reflected on both GLT0 and GLT0FUNC (which i think that the name of the new table with the Functional area included) and there are standard reports similar to RFBILA00 that reads form the new total table.
Is all i am expecting right according to your experience?
Please tell me what you have found on CoS Accounting grounds. Not many people install it this way.

Subsequent / re-activation of Cost of Sales Accounting

We are currently engaged at a new SAP customer (ECC6) that does not currently require COS Accounting to be activated /functional area functionality, but might require it at a later stage / subsequent to the initial go-live.
Based on the contents of SAP Note 740519, it appears that when COS Accounting is subsequently activated, the functional area cannot be repopulated for historic data when using ECC6.
QUESTION:
Should the customer decide to subsequently activate COS Accounting at the start of a new fiscal year (i.e. post go-live), all the P&L data will be populated with the functional area from the start of the new fiscal year. However, what about the carry forward balances for the Balance Sheet accounts? Is there a way to repopulate the "carried forward" balances in the Balance Sheet with a functional area, else the balance sheet will always contain incomplete functional area data for the carried forward balances.
Also, please advise if there is a program available to repopulate functional areas subsequently in the event of a subsequent activation of COS Accounting. If not, if the customer activate COS Accounting even though they don't require it at present, because it appears that you cannot change the functional area assignments once updated with transactional data?
As such, what is the recommended course of action:
1. Only activate COS Accounting when required, but resulting issues with updating historic data with functional area.... OR
2. Activate and configure pre go-live, but then cannot change functional area assignments once populated with transactional data.
I look forward to hearing from you.
Kind regards,
Dolf

Hi Dolf
   I have exactly the same requirement now with respect to cost of sales accounting. My client went live a couple of months back and now wants to activate Cost of Sales Accouting. I have the same question of how to populate the existing historic data with the functional areas.
   What did you do when you had this issue? Did you find out any way or work around to update the historic data with functional area? What approach did you take during your implementation?
    Your response would be highly appreciated and rewarded.
Vamsi

Cost of sales accounting implementation

Hi
Can we implement cost of sales accounting in the mid of the Fiscal year
if so ,
how to capture functional area in the transactions , changing in the master data will not allow as balances exist
what are all prequisities and configuration to be made for this to implement

It is not possible to transfer existing/old data to funactional area. Only new data from now on will flow.

Free of Charge (FOC) items Should not be posted to Cost of sales

Hi all,
We are in ECC 6.
SD Requirement: In sales order, we create line items. Once DO is created , we post PGI. At this point
Cr Stock A/C 19000 Dr Cost of sales 45000. We do not Dr GL 45000 for FOC items. We want to use another GL for this.
How can I set up this?
Thanks in advance

Hi all, Tks for the solution. Issue is resolved now.
I have done following config to get the desired outcome.
Config Steps:
MM Config:
1.New mvt type 901 created by copying std mvt 601.
2.In account grouping account modifier VAX was replaced by ZAX for WA01 -2 -GBB & WA03 -2 -GBB
3.In OBYC Copy GBB-0001-VAX 3100 Old GL to GBB-0001-ZAX 3100 NewGL
SD Config
4.In VOV6 Maintain Sch line cat. Cretate Z2 by Copying CN   and change mvt type from 601 to 901
No separate item cat or delivery type is created .
Transaction Steps:
1. VA01:Create Sales order with Two line items one with item cat TAN and second with item cat TANN.
   For line item 2, Change Sch line cat to Z2
2. VL01N :Create delivery with std type LF > TO>Confirm-->PGI.
     Accounting entries, for first line item       Cr: Stock A/C Dr: cost of sales
                                     for second line item Cr: Stock A/c Dr: New GL
3.VF01: Billing doc created. Accounting entries Dr Trade Debtors Cr Sales Revenue

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

OKB9 - Cost of sales accounts assigned to profitability segement

Hi All,
I am brand new in an SAP team and I want to understand how OKB9 works and how I could control it.
I want that all Cost of sales accounts ( included cycle count adjustment, difference when posting MIRO ) are posted to profitability segment.
At the moment account for cost difference between inventory price and invoice price is defined in OKB9 with a default cost center.Can I change that to PSG ?
Also if I define the accounts as PSG, how can I prevent people from booking manually to cost center for example on those accoutns where I only want profitability segment bookings ?
Hope this is clear enough to receive good help.
Thanks
Stéphane

If you dont want people to post to a cost center you can control this via the FSG (Field Status Group)
This is linked to the GL account, and defined at posting key level.

Cost of sales flow in COPA and its detailed breakdown cost component f

Hi ,
we have a requirement that we need details about what makes cost of sales numbers in COPA.
i know the our VPRS value is flowing into COPA as COGS but now we want that we should have ite detailed breakdown as per cost components.
can you please tell me detailed configuration steps to make this happen so that we can create a new COPA ke30 report which gives us the breakdown of the COGS numbers.
one more requirement is that for purchase parts our client is maintaing price PB00 condition and some other conditions like brokerage, freight etc in the info record for those materials and they want that all these conditions value should add up to show the COGS value for these purchase parts in the COPA report.. how do we do that?
please reply soon...
Thanks in advance,
Gurjit

Hi Balaji
Which cost elements are you talking about? You can directly make FI postings to COPA in F-02 by clicking on "Prf Seg"
Note that a cost element will either be posted to COPA or Cost Center or Internal order or WBS element... Real posting happens only to one of these...
Out of these, some Cost Centers merge into COGM/COGS i.e. Std cost and this is reflected as COGS.... The variance is posted as variance in COPA
Some cost centers like Marketing which do not form part of COGM/COGS, can be allocated from CO to COPA using KEU5...
This is how the values flow to COPA
Regards
Ajay M

Cost of sales, SD and COPA

Hi everybody
I'm using cost based COPA, and I would like generate the cost of sales posting to COPA from the material document of post goods issue. Does anyone know how to do this?
(I know that the usual way is to use price condition VPRS, but that generates some consistency problems between COPA and FI).
Thanks in advance
JPT

Thank you for your input Ram.
The thing is, I've configured OKB9 so that the COGS account would be filled in with the segment. The problem is that, even tough the segment is filled in the material document, there's no COPA document created. If I create a similar document directly in FI, it creates a COPA document.
I'm also thinking about an alternative solution:
- When posting goods issue, I would post to a "unbilled goods issue" account;
- In the invoice, I would create a new pricing condition that would take the VPRS value would post to the cost of sales account and would clear the "unbilled goods issue" account.
For this second solution I would need additional customizing, exits and pricing routines, but I think it would work. The first solution would be far more simple (basically I would have the same consistency as in account-based COPA, and the additional functionality of cost-based accounting).
If someone has any previous experiences or inputs on these ideas, they would be largely appreciated.
Thanks!
JPT

Split GL sale and cost of sale

Hi all,
User need to split GL sale and cost of sale according to the model of the car. 1 GL for 1 model. Currently for all sale and cost of sale will flow to 1 GL. I need to create new GL for each model. How do I split and is it can be done in the system?
Thanks

Hi vamsi Krishna,
I am having the requiremnt:
Pertaining to GL account and Cost center combinations. During transactions, the system has to throws an error " GL account xxxxx and Cost center xxxxx combination not valid ".
can u check your validation and let me know wht logic they given.
Go to GGB0 --> Fianncial accounting --> step one or related step
Pre requisits : from this wht right side wht logic they given ?
Check : from this wht right side wht logic they given ?
Rule : from this wht right side wht logic they given ?
Can fill the logic....
Rds, Anil

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

Cost of sales in NEw GL

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