IS POSSIBLE TO SPLIT COGS IN COST ELEMENTS

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 and material overhead
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 issue.

I dont believe this is possible currently. I have seen users design custom programs to reclassify the entries "after the fact".
Hope this helps,
Nat.

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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

How can we derive COGS by cost element ??

Hi Friends,
We are implementing standard costing in 11.5.9 ..
We have an interesting requirement to COGS to be created by Cost element (material, Labour, and Overhead) instead of one amount...
Any thoughts??
Rgds,

did you get this ? I have similar requirement

COGS accounts as cost elements

Hi All,
Please help me with this.
1.We have set up COGS accounts. Should we set them as Cost Elements? If yes , then should we use cost element category "1- Primary Costs" or "12 Sales Deduction" ? Right now we dont have COPA , we are planning to implement in future . One more thing, if we don't set up them as Cost elements now and would like to set up as cost elements in future (After COPA goes live) - can we do that?
2. Regarding Revenue accounts , we don't have SD or COPA now (but will implement in future)- Should we set up revenue accounts as "11 - Revenues" in FS00. Please help me ,
Thank you,
Sri

Hi,
1. If your client specifies that he needs the data to be transfered to Controlling, then COGS has to be created as a cost element with category-1.
If your client does not want any data related to COGS in Controlling then no need to create it as a cost element.
If you are implementing COPA in your organisation in future, without creating COGS as cost element also we can get the data in COPA reports, basing on condition type.
Data flow from SD to COPA is through Condition types in Costing based Profitability analysis.
In KE4I we assign condition types to COPA value fields, Basing on that profitability document will get created.
To bring the COGS amount to COPA,
Assign VPRS condition type to relevant value field.
If your problem will get solved with this answer, kindly award me marks
Thanks,
Deepa

Same Cost Element in multiple Controlling Areas

Can a same Cost Element under the Chart Of Accounts(CSKA) used in multiple controlling areas under the Chart Of Accounts or it should be used only by one Controlling Area. Then as Cost Element category is under CSKB (Cost elements (data dependent on controlling area)) it depends on Cost element and controlling area. So can a Cost elemtnt in different controlling areas has different cost element category. Is that possible as in that case COst ELement becomes GL Account in one Controlling area and doesnt have GL Acvcount in another.

Yes. Provided it's the same chart of accounts being used across all of the controlling areas. In the case of primary cost elements, you will still need to individually create the equivalent G/L accounts in every applicable company though.

Planni values at cost element group level instead of at cost element level

Is it possible to plan values at cost element group level instead of at cost element level in BI?
Similary I have another question for financial statements.
Is it possible to plan values at financial statement level instead of at G/ in BPS or SEM?
Thanks

Hi.
It depends on what you mean "cost element group".
If you mean node (not leaf) in hierarchy so the answer is NO.
If cost element group is regular characteristic so the answer is YES.
Regards.

Plannig values at cost element group level instead of at cost element lev

Is it possible to plan values at cost element group level instead of at cost element level in BPS or SEM?
Similary I have another question for financial statements.
Is it possible to plan values at financial statement level instead of at G/ in BPS or SEM?
Thanks

You mean that I am on the wrong forum. Which forum is useful for me for this question?
Thanks

Planning at cost element group level

Is it possible to plan values at cost element group level instead of at cost element level in CCA?
Thanks

Hello,
Yes it is possible. In t-code-KP06 Cost Center/Activity Input planning, we can select input values in the combination of individual Cost Center-wise OR Cost Center Group-wise and individual Cost Element-wise OR Cost Element-wise. Here if you give Cost Element Group as your input value, you can plan cost for each Cost Element.
Regards
appalas

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

Primary Cost Elements

Hi,
Pls tell me whether we can create Primary Cost Elements for all P&L related GL codes or there is some restrictions?
Regards,
Vikas
9891587368

Hi Viki
Please note the below mentioned important points. Although your query is answered in the thread, would like to ensure you do these checks to keep clean cost accounting records
You should not create cost elements for all P&L items. Please note not to create cost elements for following GL accounts
1) Cost of goods sold
2) Variance accounts with PRD, PRF - this results in double accounting in cost accounting books
3) If u hv sales order costing related scenarios then u can create COGS account with account assignment. Depends on your scenario
4) All other accounts u can create cost elements as per the business requirements.
But ensure u do not create COGS as cost element. If you create COGS as cost element system asks for accnt assignment object every time and to eliminate this a cost center is assigned in OKB9 for COGS cost element, which is not correct.
Please check this, very imp to hv clean cost accounting records
Assing points if the above clarifications are helpful

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

Depreciation as Cost Element (OKTZ)

Hi,
I need to see the Depreciation posting as a cost element (OKTZ).
I´ve already created a cost element called Depreciation, and asigned the depreciation cost elements to it. But even after I´ve executed the transaction KSS4 (Plan Cost Splitting) the Depreciation cost element lines cames zero after the execution of the Material Cost Estimate with Quantity Structure (CK11N).
I expected to see the cost component elements as the example below:
Material 6001
Cost Component | Name of Cost Component | Value
1        |                 Raw Material            |           1,36
2         |                M/H                          |          3,02
3          |               Depreciation               |         0,68
Raw Material = Primary Cost Element (OBYC)
M/H = Secondary Cost Element ctg. 43 (Activity Type)
Depreciation: Primary Cost Element
Thanks a lot,
Bruno

Hi Sridhar,
I tried to follow this document, but without success.
I' ve created 2 Costs Component Structures (ME and M2).
ME:
- 10 Raw Material
- 20 Indirect Costs
- 30 Machine Hour
M2 (Primary Cost Component Structure):
- 40 Raw Material
- 50 Indirect Costs
- 60 Depreciation
- 70 Machine Hour
TransferStructure:
- 10 Raw Material_________ 10 Raw Material
- 20 Indirect Costs________ 20 Indirect Costs
- 30 Machine Hour________30 Machine Hour
- 30 Machine Hour________40 Depreciation
But, it´s not working...
Can you help me?
regards,
Bruno

How to find the origin costs(primary CE) for Assessment cost elements

Hi All,
How can we trace the Orgin costs(cost senders) for Assessment cost element.
I have to create Co report where user wants the Costs senders(primary cost elements) details for Assessment cost element.
Our cycles are defined as senders - cost center and receiver's are Internal orders.
so for assessement cost elements what are the primary cost senders.
Is it possible to trace the primary cost elements details for Assessment cost elements.
Regards,
Raj

Hi Chirstian,
Thanks for the information.
I have done the same as per your advise.
I am trying to pull all the primary cost elements which are posted with my sender cost center's.
All the cycles are defined as share in % = 100%.
But unfortunately all the debits are of primary cost elements is not equal to credit amount of my Assessment cost element.
The figures are very far and couldn't trace the difference amount. Is there any other report in SAP or how i can define in report painter to meet this requirement.
Thanks & Regards,
Raj.

Lock Cost Element into a WBE element

Hi all,
I want to lock all movements (CO-FI-MM) for a WBE with a Cost Element. How to do this? It's possible with a GGB0 validation?
I'm thinking about put the Cost Element code in a WBE master data field (I don't know which one yet). Then create a validation that check in Co tables that all costs movements (not budgeting) for a WBE element has the correct cost element.
How to do this?
Thanks a lot. Regards

It's possible with a GGB0 validation?
It can be possible with CO validation.
Cost Element code in a WBE master data field (I don't know which one yet).
You cannot assign cost element in WBSE master data. What you should do is? If the CO document contains is posted with that cost element then check If WBSE is entered as the CO object.
On the other end: I want to lock a WBS with a Cost Element, not to lock a Cost Element with a WBS.
I want to put the Cost Element in a WBS master data field (like Responisble o something like this eith a Char10 domain) and check if posting in a WBS element, if KSTAR field of the CO document is equal to Responsible Field in the WBS element

IS POSSIBLE TO SPLIT COGS IN COST ELEMENTS

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