Wrong Calculation of Sales & Administration Cost and COGS
Dear Sir,
We have a scenario where we charge Over-Head on the Labour . Accordingly we have made necessary setting in the configuration . But in the Cost Run , we find that COGS / Sales & Administration Cost is getting calculated wrongly .
To explain it further , say Material Cost is 100 and Labour Cost is 40 . Over-Head defined on Labour is say 50% .
In the Ck11n , we are getting following values :
COGM ---> 140
Sales & Administration Cost -
> 60
COGS -
> 200
So the mistake is , that in "Sales & Administration Cost " it is clubbing both Labour and OH . So instead of 60 the value must have been 20 .
Same is true for COGS , here instead of 200 , correct value must have been 160 .
Kindly guide me , how to resolve this error .
Regards
Sonia
Hi
Please ceck your costing sheet.There should be two base one for Material and another for Labour.
In the Overhead rate you have to mention the labour Row correctly.
Also check the costing variant whether correct costing sheet has been assigned or not
Thanks
Ansuman
Similar Messages
-
Sales order costing and valuated sales order stocks
SAP Gurus
Can somebody explain the key configurations and account postings in sales order costing and valuated sales order stocks in product costing using the specific tcodes.How the process moves from one configuration to the other?
Use of examples will be appreciated too
Thankshi rback59
Thanks for your valuable reply
i completely agree with your point regarding valuation . but want to know what is the impact of recosting of a sales order . as system only picks first goods receipt cost all the time . then what is the use of recosting ?
Thanks
Sachin -
Std Cost Calculation in Sales Order - EK02 and by T-Code CK11N
Hi,
I have repharsed my question and described it point wise as still i am unbale to solve. Please help.
1. I have defined a new cost relevance indicator Y with 110%. the managements wants to see 10% extra cost in the sales order on some meterials of the BOM. This is working fine with the costing variant defined for sales order costing EK02.
2. When i run cost by CK11n, it calculates cost based only on indicator X irrespective of what indicator has been defined in the BOM, which is also ok.
3.Further, the costing variants defined iin steps 1 and 2 are different and both are maintained by different T.Codes, OKY9 & OKKN
4. We need a new csoting variant for sales order costing that calculates cost same as CK11n, I ahve tried but it calculates cost based on the indicator defined in BOM
5. I want to understand exactly where in the configuration of casting varaint (OKY9) or configuration of cost relevance indicator (OS21) what do i have to change to take the effect
Appreciate your support
SAPXPTHi
Use substitution method and values arrived based on 10% of the sale order value and Use CK74N Additive cost before you run costing run.
Hope this might help!
Regards -
Flow material product cost to sales order cost and no explosion of structur
Hello,
We have a business requirement - Business is currently performing product costing at material on monthly basis using quantity structure (with help of avaiable bom and routings). Material costing nicely gives the cost with clear split of material cost, labour cost, external cost etc. Then at sales order level we want to do the preliminary sales order costing. The reason for sales order planned costing is, we are performing result analysis revenue based by comparing planned cost. Business is saying, we already calculated the material cost, labour cost at the product level and same should be as it is transferred to the sales order planned cost and we just want to add the overheads.
The cost already calculated should directly pass to sales order and the order should not explode the BOMs again or try to find activity prices from routings. Then with the already available values of material, labour costs, system should only add the overheads via costing sheet.
The cost compenent structure exploded in material should be passed to sales order and not just the total cost.
There are several reasons I believe sap should not allow this behaviour. I seek your inputs to validate the same.THIS SHOULD BE POSSIBLE WITH "TRANSFER STRATEGIES" - TCODE OKKM.
GO BY THE BELOW GIVEN PATH AND TRY.
READ IMG DOCUMENTATION FIRST, THEN TRY. -
Hi all
If a sales BOM is on an AR Invoice, I want to hit COGS and inventory of its components, not of the parent item. This used to be the case with an earlier SAP 2007A release. However, when we upgraded to a new patch 35, this has changed. Now when a sales BOM is sold (AR invoice), for some reason it doesn't hit COGS of its components, but of the parent item.
For example
Sales BOM ABC123 consists of
item 1
item 2
item 3
When ABC123 is sold, it should hit both inventory and COGS of item 1, item 2 and item 3! Not of ABC123
Is this some sort of a setting in SAP that can be changed? Thanks!
SimonHi Simon
I am on PL37 of SAP Business One 2007A and tested with a Sales BOM that has 2 children items. One is set at Warehouse level and the other at Group level. The COGS posted correctly for both children to their respective COGS accounts.
Are you using Warehouse or Item Group level account determination? Also check which warehouse/(s) the individual children are posting from on the Invoice.
Kind regards
Peter Juby -
Query for details of Sale order , Invoice and COGS
I Need the report cointing following based on month & Business partner
Sale order, Sale Amount, Due date, Invoice Amount, Last Invoice date, COGS amountHi Anantha,
Please check below link and modify according to your requirement.
Sales Order Query for in SAP B1
Query - Sales Orders linked to Deliveries
My Top SQL Queries for SAP Business One
Hope this helps
Regards::::
Atul Chakraborty -
hi,
1) i was told that landed cost (inbound freight cost) is part of cogs. may i know why?
what i understand a product cost is made up of direct labour, direct material and manufacturing overhead but no landed cost.
2) distribution cost (outbound freight when selling) is not landed cost. it is not part of cogs. the cost should be reported at where?
can have advice?
thanks
rgdsHi,
It seems u r mixing landing cost for direct material(Procured) and u r finished goods(produced).
In the case of procured material all the costs incurred to bring the material upto their usage level u can account as the material cost. Landing Cost is one such price. U account the cost of the procurement material as direct cost in the product in which it is consumed.
In the case of produced goods COGM includes Direct MaterialsDirect Labour Production Overehads. COGS is COGM+All Indirect overheads.
Here all Indirect overheads means all the cost as a producer u incurr to distribute to u r customer. Landing cost will be more relevant from the customer point of view. For him landed cost is purchase price(u can understand producers COGS)+ all incidental costs.
Regards
Sudhakar Reddy -
Sales order costing for Configured Material (Material Variant Not KMAT Mat)
Hi All
For a Configured Material (Variant) (Not KMAT Material), which is having Std price costed.
But if we create a Sales Order for the Configured Material, what options are availale to Execute Sales order costing and take the sales order value to COGS during Delivery.
The reason being Client wants to Cost BOM items are price which is different from the Price used in Std cost estimate due to Price Volatility.
I can understand we can do this in KMAT, but not sure how to do in Conifgured material. We can execute sales order costing and get Statistical cost value in EK02/EK01, but how to get this value posted during PGI..?
Thanks
AravindHi Ajay
Even if i maintain M in Valuation filed, my Material Variant HALB material is already having standard cost in its material master and it is picking the std cost during PGI Delivery and hitting COGS A/c.
Now how to get my sales order costing to real and post my sales order costing value to GI..this is the client requirement.
Due some complication KMAT is not used and logistics go with Material Variant -
BOM not picking correctly in Sales Order Costing
Hi,
During Sales Order costing of configurable material Say ABC is configurable material(finished material) and it has 4 components. I am using standard sales order costing variant as PPC4. During sales order costing from VA22(quotation) of the material ABC(finished material) system take its first two components during costing. Remaining two components system does not take. It shows correctly BOM usage as 2. But two components are missing during calculation.. What may be reaon or special configuration is required for sales order costing ?
Best Reagrds,
SamratDear,
please check your condition type : Ek02
It is used for statistical posting. If you use this condition type, the result of unit costing is simply a statistical value which you can compare with the price. So, this can be can used instead of VPRS to calculate the profit margin for the assembly item.
Please note the following points:
1) The condition type must have condition category 'Q' (costing).
2) The condition type must agree with the condition type defined for unit costing in the pricing procedure.
So, EK01 & EK02 are the condition type that will display the results of the unit costing for certain type of sales document and can be used in Make To Order scenario.
Sales order cost estimate can be flow to COPA. Where you have to maintain setting in COPA in Define access to Standard cost estimate for costing key select sales order cost estimate.
For transfer SD to COPA you have to use Transaction KE4I here enter SD conditions with COPA Value fields.
So, whether EK01 or EK02, these will determine from Requirement class configuration. Requirement class in turn there is requirement type and requirement type is determined by item category and MRP type when you cost a sales order (valuated/non valuated sales order) at that time when save the cost estimate then the cost value automatically gets populated in your condition tab. Hence, if the item is not relevant to sales order costing then the cost comes from VPRS.
For more details please check below links
http://wiki.sdn.sap.com/wiki/display/ERPLO/VPRS%2C+EK01%28ActualCost%29andEK02%28Calculated+Cost%29
Std Cost Calculation in Sales Order - EK02 and by T-Code CK11N
Thanks,
Ram -
Importance of EK01 in Sales order costing
Hi all,
What is the importance of EK01 in sales order costing and what is the diff between Ek01 and EK02.
ThanksCheck this link http://help.sap.com/saphelp_pserv472/helpdata/EN/90/ba6e67446711d189420000e829fbbd/frameset.htm
Regards / KOTA -
Sale Order costing - Updation of SD conditions
Hi SAP Gurus,
I would like to know how the cost calculated in Sale Order costing is updated in VPRS Condition type Pricing Procedure.
Where do we do the settings for updation of the same
You Valuable answer would be suitably rewarded
Thanks in Advance
Best Regards
SuryaHi,
We do not have any settings as to how the cost will be updated in VPRS
Best Regards
surya -
Subcontracting in sales order costing
Dear Sapfans,
We are having make to order with sales order process (sales order as cost object).
We are having a scenario where we are sending the goods for an external processing (subcontracting) .
After the MRP run, we are converting the purchase requisition to purchase order with account assignment E.
At the time of doing GR of finished goods from subcon vendor, the system withdraws components from the sales order stock. Which means the subcontracting charges should be debited to the sales order
However, I am getting an error for assigning cost object for GL account for subcontracting charges.
Why is the sales order not being considered as cost object here?
I have done sales order costing and saved the cost estimate.
Any suggestions please?
Thanks In AdvanceHi Anulekha,
Please see below scenarios
1. Subcontract to inventory
At the time of GR against subcontract Purchase order we have the following three entries
A:
Dr: Consumption account
Cr: Raw material Inventory account
B:
Dr: Finished material Inventory account
Cr: Change in Inventory account
C:
Dr: Change in Inventory account
Cr: GR/IR account
2. Subcontract to PP/SD order
At the time of GR against subcontract Purchase order we have the following two entries
A:
Dr: Consumption account PP/SD order
Cr: Raw material Inventory account
B:
Dr: Finished material Inventory account PP/SD order
Cr: GR/IR account
We are using both scenarios and working correctly.sales order is cost object in my scenario also.
Hopefully this helps you.
Thanks,
Rau -
Tax calculation on sales order and invoice is different
2007A, SP0, PL49
The tax on a sales order does not match the tax on the linked delivery and invoice by 1 cent. We take payment based on the sales order amount as the delivery and invoice are done after the fact. Why is the tax calculated differently on the delivery/invoice? We would want it to always match.
Item price = $111.04. Taxcode rate 13% has combination of 5% GST + 8% ONTAX.
On Sales Order, ONTAX = $8.88
On Delivery/Invoice, ONTAX = $8.89
Can someone please explain the difference? Is rounding/tax calcualtion controlled by system settings per document?Something must be wrong with your Sales Order tax. The actual tax would be 8.8832. Round up to 8.89 is correct. Do you have any SP, FMS or add-on been used?
Thanks,
Gordon -
Costing COPA and cost element category '1' for Revenue and COGS
Hi,
In my SAP environment historically Revenue GL accounts were created as cost element with category '1' (costs) and are being posted against cost centres. I know it is not SAP best practice, but it has been working like that in here for years. We have not activated and used COPA so far.
I am currently analysing options of implementing costing based COPA. I wonder if the fact that Revenue and COGS accounts are created as cost element with category '1' should cause any issues with COPA.
I know that in a perfect world it should be '11' for revenues and '12' or no cost element for COGS, I just hope we can leave CE category '1'.
Thank you,
KarolHi Ajay,
Thank you for explanation. I feared it would cause issues. However, I checked with one company code that has active COPA.
It has two Revenue accounts: one set as '11' , which is used for most automatic SD postings and other one with '1' category which is 'Other revenues' - sometimes used for automatic postings (configured in VKOA for services) and often used for manual revenue postings.
What I noticed is that documents posted for this 'Other Revenues' were posted against cost centre but also profitability segment was populated. However, it was only populated with sales quantity, no Revenue value field was updated. It must have been configured so it does not show error in COPA but update is not complete in PA table. No COGS split value fields are updated as these postings refer to services.
What I also obseved is that all COGS accounts are set as '1' and are linked to cost centre. But this seems to not affect COPA and it creates COPA document with correct COGS split into cost component category value fields.
So I assume this is only issue for Revenue accounts with '1'. COGS can be left with '1' for time being.
Do you know which config for Revenue account with '1' might have stopped COPA from giving error while posting invoices in SD?
Thank you,
Karol -
Material with item cat.group ERLA impact on costing and sales pricing
Hello,
I would like to know if a material which is defined as item category group ERLA and which has two sub-items posted in the BOM with usage 5 with its respective std cost could be calculated for costing or not?
Can I have some information about the impact on costing and pricing in sales?
Thanks in advance
ABNo the material type should be a FG : it is relevant for sales reporting. For example I call it material "A". In the material master data within the sales screen the item category group ERLA is assigned to "A" . The material A is a grouping material with a sales BOM which contains some sub-items for example B and C which are picked and shipped together. The grouping material is not handled as stock material: only the sub-items are stocked and moved.
The customer could only require the material A with its price and receive phisically the two sub-items with a unique package unit or with two separate ones.
In this scenario the FG with ERLA item could be estimated for standard cost or not?
Thanks in advance
Andrea
Maybe you are looking for
-
Is anyone else not able to get their google contact to sync? I have GmAil set up as my mail and iCal no issue. I go to contact > Pref >select local mac > and enable google sync. I then hit the sync on the menu board and nothing. The address book ream
-
Time Capsule with Epson XP-200 wireless set up problems
I'm going through the Epson install software to set up my Epson XP-200 to print wirelessly. I am running a network off of my TimeCapsule. As instructed I have the printer plugged in via USB to my MacBook running 10.6.8. I have confirmed that the M
-
Changes on equipment are not saved at the backend (MAM30_031)
Hi, if I change some equipment data e.g. street and city on the client, this changes are not done at the equipment in the backend. Status of MAM30_031 is I-Finished which holds the correct changed data inside. But if I now look into the equipment at
-
Automatic file naming and data saving
Hi, I am building a program where there will be several I-V scan for each value of temperature. I would like to make the data saving fully automatic. To explain in more deatils: I want the program to generate a new file on its own , give a file name
-
I pod wont restore through itunes
Hi, had probs with my i pod classic 180gb. Start up in itunes it says "ipod preparing for recovery" then " itunes detected an ipod in recovery mode needs to restore", so i do that but it comes up saying itunes could not restore " an unknown error has