Posting Cost of Goods sold to PA

We have a requirement to post COGS to COPA. We have costing based pa active. Cost element categry 01 requires a cost object and I have made it 12. What is the based practice to get a contribution margin from COPA. ? Can COGS be posted as a G/L account only and still get a report from COPA?
- Thanks

Dear Pradip Sir,
will we tell me In KE41 T-code VPRS and PR00 two things are there I know PR00 is used for revenue and
VPRS is for COGS my questions is what is the thoroughly meaning for this thing
1. When SD billing is done money is not come ,so at that time imaginary money come through PR00 ( I'm right)
2. So what is the use of VPRS ( wt i think VPRS is cogs + some profit , tell me i'm wrong)
After I thoroughly konw this thing I ask u about KE12 T.code
Thanks,
Sahoo

Similar Messages

How to post cost of goods sold to io per functional area and account determ

1. We create a sales order with reference to a revenue IO with functional area ABC01.
2. We create a delivery document on the sales order and goods issue XYZ.
3. We expect the cost of goods sold for the coal to hit an existing IO with functional area ABC02 based on account determination for XYZ.
4. Instead we see both the revenue and the COGS hitting the revenue IO on the Sales roder.
5. For now, the accountants responsible for those companies have been making journal entries all along to correct the postings.
Please advise what needs to be done for step 3 to happen so that the extra step 5 need not be done.
(IO - internal order)
Thanks,
Venkat

What is the IO you have assigned in the Sales Order please?
Just check the Sales Order - Account assignement, so that you can able to change if there is a different IO.
System won't pick up IO automayically until unless you secify in Sales order to done OKB9 settings.
Chek the above
Thanks

Posting of Commission Exp to calculate the Cost of Goods Sold

Hi Team,
I do work in an automobile manufacturing organization and is new to SAP FI module. I have a business requirement which I need to fulfill; I would appreciate if all you gurus help me with finding the solution.
Business Scenario: at present, we are posting the following entries to record the commission we paid to dealers for selling vehicles.
Commission Exp (DR)
Customer (CR)
Customer (DR)
Dealer (CR)
With these entries we are not been able to track the commission based on vehicle variants i.e. Toyota GLI, XLI etc.
New Requirement:
To calculate the Cost of Goods Sold for a variant, I need to track the commission expense based on vehicleu2019s variants. Please help me in finding the solution.
Thanks

Thanks for quick response.
Let me give little more details of type of commission entries we have
1) Normal Commission - Fixed commission variant wise and is derived from SD.
2) Additional Commission - No predefined formula, this is totally based on top management discretion. Management decides how much would be paid to a particular dealer.
3) Sliding Commission deduction - Deduction of certain amount from commission on late payments.
4) Additional Sliding Commission - Payment of additional commission based on early payment terms.
Currently, FI department is calculating all these figures on Excel sheets and then post a JV for each type of above mentioned commission.
How can I configure the system to calculate these amounts automatically without involving Excel Sheet help?
and how to post these amounts variant wise along with dealers and customers.

Cost of Goods sold value problem

Dear all,
In a Make To Stock, material use "Moving average" case.
For example
1-Sep: Moving avg = $30
15-Sep: Sales & PGI (A)
30-Sep: Moving avg = $70
30-Sep: Sales & PGI (B)
First of all, I expect the Cost of goods sold for Sales & PGI (A) should be $30, and $70 for (B).
Is that correct?
However, now I have all the Sales & PGI entries created on 30-Sep,
And the posting date is controlled by the Actual GI Date in the Delivery.
And I found that both PGI value became $70!!!
Could anyone explain that to me??? Or could anyone provide me a solution to this?
Many Thanks!
Best regards,
Chris

PLease check this SAP note. I think this will solve your problem
The following example should demonstrate how such prices can come about. The main cause of the steep rise in the price is that a posting, the value of which is externally predefined, results in a stock quantity which is close to zero. Furthermore, goods receipts exist which are valuated with the current moving average price since no external amount is specified.
Example:
Overview:
                                  Quantity        Value    MAP
(1) Initial stock:                0 items        0.00 $   200.00 $
(2) GR for 1st purchase order: +1500 items +300,000.00 $
    Stock after (2)            1500 items 300,000.00 $   200.00 $
(3) GR for 2nd purchase order: +1500 items +330,000.00 $
    Stock after (3)            3000 items 630,000.00 $   210.00 $
(4) GI for the delivery:       -2849 items -598,290.00 $
    Stock after (4)              151 items   31,710.00 $   210.00 $
(5) Reversl of 150 itms from (1)-150 items -30,000.00 $
    Stock after (5)                1 item    1,710.00 $1,710.00 $
(6) Inventory difference        +150 items +256,500.00 $
    Stock after (6)              151 items +258,210.00 $ 1,710.00 $
(7) Reversl of 150 itms from (1)-150 items -30,000.00 $
    Stock after (7)                1 item +228,210.00 $ 228,210.00 $
Detail:
1. In the following, say for material X price control 'V', the moving average price is 200.00 $ and the current entire valuated stock is 0 items.
Assume you have a purchase order of 1500 items at 200.00 $ each. Moreover, 10 partial goods receipts are now posted for each of 150 items for this purchase order, so that material X then has a total stock of 1500 items with a value of 300,000.00 $.
2. Another purchase order now exists of 1500 items at 220.00 $ each. Here also, 10 partial goods receipts are posted for each of 150 items goods receipt. As a consequence, material X now has a total stock of 3000 items with a value of 630,000.00 $. The moving average price is thus 210.00 $.
3. Now let's look at a delivery of 2849 items. This is valuated as follows using the logic of the quantity to be posted * total value / total stock. This leads to a total stock of 150 items with a value of 31,710.00 $. This does not affect the moving average price, and thus remains 210.00 $ also after the posting.
Now consider the following postings:
4. You reverse the first goods receipt under 1. This reversal would valuate the goods receipt of 150 items with a value of 30,000.00 $. As a result Material X after posting has a total stock of 1 item with a value of 1,710.00 $. The moving average price would thus already be 1,710.00 $.
5. There is now an inventory difference of 150 items without entering an external amount. This posting is valuated with the moving average price and leads to a stock quantity of 151 items with a stock value of 258,210.00 $.
6. You now enter another reversal for one of the partial goods receipts cited under 1. This then is valuated again with a price of 200.00 $. This results in the material having a stock of 1 item with a value of 228,210.00 $.
If you now repeat transactions/events 6 and 7, you can imagine that the moving average price grows rather quickly.
Solution
This effect is both from a business and accounting point of view the logical result if there are a lot of goods receipts which have to be valuated with the moving average price and goods issues which in contrast to this are posted with an externally predefined amount.
You can determine tolerance limits for the moving average price variances in Customizing (Transaction: OMC0). Further information can also be found in the R3 guide: MM - Invoice verification and material valuation.

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 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

CO - Cost of Goods Sold as a cost element?

Hi,
I've been creating primary cost elements for cost and revenues accounts.
I have already created cost elements for revenues, but I have some doubts about an account Cost of Goods Sold. Do I have to make cost element for it?
SD module is being implemented and revenues and cost of goods sold will be posted on SD orders.
CO-PA will not be used.
What is the best solution? Should I create cost elements for Cost of goods sold Account and if YES, which cost element type should I choose (1 or 11?)
Best wishes,
Karol

Thank you very much! Your answer solved my problem.
I have one more question about profit centers assignment to material master.
I have divided my profit center hierarchy in such a way - that I could easily prepare a COS profit and loss statement using them. Basically I have such profit centers like:
- Profit on sale of Goods
- Profit on sale of Materials
- Profit on sale of Service
- Costs of Production
- Other costs of sales
- Costs of Administration
As you can see I didn't reflect in this hierarchy an organization structure.
I was wondering which profit center could be used for Material master assignment.
I know that for sales order there has to be assigned one of:
- Profit on sale of Goods
- Profit on sale of Materials
- Profit on sale of Service
But I don't know whether it is OK to use them for materials master assignment. Can you suggest me some solution? I think that there should be different profit centers for goods and different profit centers for materials.

CGS(cost of goods sold)

CGS(cost of goods sold)
Posted: Nov 7, 2006 7:47 PM Reply E-mail this post
Hi every one,
I want to assign account for CGS, where i have to do it.
and what customizations and configuartions required for CGS both in SD and FI-co.
Doucment is appreciated.
Thanks in advance
sasi

SD-FI Account determination is done using Transcation VKOA. I can email you the documentation.
Rgds.

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

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 in cross company sales

Hi ,
We have a situation where we need to transfer goods from one company code and site ( Company A ) to another company code and site ( Company B )at the cost price of company A. We are creating a purchase order for this goods from Company B to Comapny A and in turn a sales order is issued for this from Company A.We pick up purchase price in PO from as the Per unit cost of comapny A.
The issue arises here about in the delivery from company A where the cost of goods sold in delivery is done based on the total stock value divided by the quantity sold as this is SAP method of calculation and this does not always match with the per unit cost. Currently we are passing this difference as discounts.
This is the best we could achieve where by we have been able to satisfy the business need of having no difference on the purchanse price of company B and sales price of company A.
My question is : Whether is there any more effecient method of achieving the desired result without having the difference which we are currently passing on as discounts ???
Would really appreciate any help.
Thanks and Regards,
Kartik Shah

Hi Raj/ Mahendro,
Thank you for sending me the reply. I will briefly explain you the our process. The purchase from external vendor is done in warehouse belonging to one company code. The purchase is done at Moving average price but normally for an article there are no price variations. Goods receipt in warehouse is done after adding freight and insurance onto the cost of article.This is the value at which we want to transfer to another site in anotehr company code.
Now the replneshiment requirement from the other site which belongs to different company code raises a PO on to the warehouse. This PO picks up the article price (KOMV-KBETR) as the MAP from the warehouse (MBEW-VERPR). However the field MBEW-SALK3 for the warehouse is not exactly the quantity multiplied by MAP.It is actually the VERPR field which has the value based on the field SALK3 divided by the stock quantity and rounded off to the two decimal places. There is slight variation here itself due to the rounding of the total stock value and then again rounding at the per unit price.( Both the above fields of MBEW)
What we are doing on the sales order is to pass the MBEW-VERPR as EDI1 and the sotck value for the quantity ordered ( ZDEI a new condition) by the site as MBEW-SALK3 divided by the total stock at that point and multiply by the quantity ordered. So due to rounding differences there is difference in the value of EDI1 and ZEDI . Again during the billing from warehouse this condition ZEDI picks up the stock value based on the quantity delivered.
Since there are minor differences due to the rounding of values between per unit price and the actual stock value this are being passed off as discount and the payables by the ordering site and receivables from the warehouse are the same. Cost of goods sold from warehouse is the actual stock value being sold which is the revenue for the warehouse.
Even if we use the standard SAP stock transport order with billing how could we ensure that we do not have even this minor differences.
Doing away with another document is not the requirement since we already have automated the process of sales order creation from the pruchase orders.
Do you think we can achieve our requirement using SAP standard process? Except for this rounding differences we are fine with the current process as well.
Do Look forward to your answer.
Warm Regards,
Kartik Shah

Cost of Goods Sold Value

Hello,
In our material master, neither Moving Average price nor Standard price is maintained,But while doing PGI it is taking value of Cost goods Manufactured from costing Sheet.
Pls help me to know,how this value gets determined during PGI and procedure to capture this cost of Goods manuf. in condition type in a sales order.
Regards
Amit
Edited by: Amit Gupta on Mar 23, 2009 5:40 AM

Hello Lakshmipathi ,
Yes, Our is Make to Order Scenario.Pls help us to determine this cost in Sales order after costing Run.
In EK02 we can capture Cost of Goods Sold,But i want to capture Cost of Goods Manufactured.
Thanks for your prompt response.
Regards
Amit

Cost of goods sold is related with gl code combination id

Can any one pass the query how the cost of good sold account is l liked with GL code_combination_id

Like any other GL code, i.e.:-
select code_combination_id
from gl_code_combinations
where segment1 = ’01’
and segment2 = ’540’
and segment3 = ’5360’
and segment4 = ’0000’
and segment5 = ’000’
-- etc. according to how your COA is structured
and chart_of_accounts_id = +{ your COA id }+;
Regards,
Jon

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.
Thnaks in advance.
Su

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

Posting Cost of Goods sold to PA

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