Relation between PS and COGS,COGM

[former_member513364]

Hi Experts,

Need a clarification on how SAP PS is related to COGS and COGM.

Client is a manufacturer of specialized product and works in MTO scenario. Client has Milestone payment with customer, hence we opted for Order Related Billing.What will be the impact of Order related Billing with COGS.

when we are doing project delivery in CNS0 and picking/packing through VL01N, I can understand that through 601 movement type COGS is hit.

We assign Billing Element Components(FERT) in our activity. During MRP run thru MD51, plan order is generated, then PP converts Plan Order to Prd Order with account assigned to WBS. then order is settled to WBS. so all actual and variance gets settled to WBS. Can you please explain the relation with COGM in this business case.

Regards,

AM

[former_member388328]

Hi Murhty,

There are lot open questions in relation to business process. But I will try to answer the last question. "Can you please explain the relation with COGM in this business case."  From your quesstion i assume that your system is not configured for PS to consider the COGM,  If you are using Result analysis, in the PS in the month end then, probably you will calculating the COGS and Revenue in the month end.

Thanking you

Vengaiah

[former_member513364]

Hi Vengaiah,

As pointed, I am in the confusion that can PS be configured to consider COGM in MTO scenario. if yes, please explain how do we do.

Regards,

AM

[former_member388328]

Hi Murthy,

Yes definitely you can configure it, There valuation methods in RA 10 to 14 which can used for COGM calculations.

Thanking you

Vengaiah