Wrong Calculation of Sales & Administration Cost and COGS
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 -
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 .