Cost Object require at the time of PGi

[vivek_srivastava12]

Dear All,

I have a question:

We have created a Delivery and at the time of doing PGI we are getting error message GL Account requires a CO Object.

I know the solution of this issue, to maintain the Cost Center in OKB9 for the cost Element.

My Query is is it necessary to create Consumption GL Account as Cost Element, also why do not we create Cost Element for for COGS Account.

Please help.

Regards,

Vivek Srivastava

[vivek_srivastava12]

Answered

[atif_farooq]

Dear:

COGS GL are maintained on the basis of Cost of sales accounting concepts. As soon as goods are sold delivery order is created and Cost of sales gets debited to properly reflect Gross profit impacts. Hence all COS GLs are made cost elements so that the effects can be posted to COGS and it becomes part of product costings in CO module. This is for your information.

Regards