How to assign cost object to profitability segment

Hello SAP Gurus,

We are encountering error in Posting Goods Issue.

Account 51020000 requires an assignment to CO Object.

This is a cost element. Standard cost of sales.

We already maintain it in OKB9 as profitability segment.

What else can we do to solve the error?

Thanks!

Athena

SAP Managed Tags:
FIN Controlling

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Hi Athena

You need not to make COGS a/c as CE then it will ask a cost object.

Kamal

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Why COGS is not a cost element?

At the time of PGI it will post COGM to COGS a/c so basically it does not need a CE..if you create a CE cat 1 it will ask for CO object like CCtr etc.. What cat of CE you have created...

Kamal

Category 1 Primary costs/cost-reducing revenues

Hi Athena

In addition to my earlier one..more clearly you are assigning COGS in OBYC GBB-VAX as a BS a/c so no CE required because it is a transit a/c to move stock from Inventory to sales stock

But if your SO is a cost object the you are assigning GL a/c in GBB-VAY and in that case CE may rbe required...

So decide accordingly

Kamal

Yes when I checked OBYC, there is VAX for COGS.

Do I have to delete this? And maintain VAY instead?

Hi Athena,

Do not make COGS (GBB-VAX) as cost element. The reason for this is that in a manufacturing environment, the cost is incurred not at the point of sale but at the time of consumption (raw material, activities etc). Therefore, as far as controlling is concerned, the cost is already recognized in the production process. If you make COGS also as cost element, you are booking the cost twice, which is not correct.

Unless the sales order is a cost object (MTO) do not maintain GBB-VAY. For confirming whether sales order is MTO or not, check its requirement type.

Hope this clarifies.

Abhi

If you want CE then assign in VAY for cost object like SO/WBS element etc if required

In normal scenario NO CE in VAX

Kamal

Hi Abhi,

Thanks. Very informative. So you mean I should removed the config of GBB VAX?

Hi Kamal!

I will maintain GBB VAY for this.

Thank you so much as always.

God Speed and More power!

XOXO,

Athena

Hi Athena

You are welcome...........

Pl close the thread

kamal

Hi Athena,

No I clearly don't mean that. What I mean is that you should first understand whether the scenario is MTO or MTS.

If it is MTO, then yes, remove from VAX and put it in VAY.

If it MTS, then removing from VAX and putting is VAY will not help. You must have VAX, but this account should not be a Cost element. You may have to create a new account (without CE) and put it in VAX.

Hope this helps

Abhinav

We are in Made to Order scenario.

Hi Athena,

Does your sales order item reflect this ? (MTO)

Does it have a settlement rule?

If yes, then you must insert the Cost element COGS in GBB-VAY.

Abhi

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