Cost of Goods & Revenue Recognition

[Former Member]

Dear All,

I have a typical requirement related with the cost of goods sold (COGS) G/L account & the revenue recognition.

Under SAP best practice, the COGS account is updated together with the Inventory account when post goods issue (PGI) is done.

there are 2 scenarios here -

1. Normal Sales - delivery related invoicing. Here the invoice is created immediately after the delivery. So here the revenue & cost recognition matches.

2. Project sales - PS not being used. Just created milestones using milestone billing. Here the invoice is order related with billing plan. So the milestones are

a. 50% after order confirmation.

b. 40% after delivery.

c. 10% after installation & commissioning.

Here the revenue will be generated at three stages & the COGS will be updated after delivery (PGI).

Is there any way we can update the COGS at the time of invoice in standard SAP.....?

With best regards,

Niyaz.

[former_member440871 · Accepted solution]

Hi friend,

Pls use T-code OMJJ and OBYC to setting as stop update acct in PGI! I only know the location to impact about it! With update acct in Invoice, I need to verify again for! I will update when I cover it. Hope this help

Best regards,

[claudia_neudeck]

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