S/4 HANA New Functionality: COGS Split on PGI at Branches (not a manufacturing unit)

[Former Member]

Dear Experts,

With S/4 HANA, SAP has started recommending to use account based COPA instead of costing based COPA. SAP says this because of the three new functionalities i.e.

1. COGS split in GLs at PGI as per cost component structure.

2. Variance settlement in multiple GLs as per variance categories on production order settlement

3. 3 currency can be transfer to COPA as per requirement.

Now requirement is that. Finished goods are sold from manufacturing units and from branches also. FG is stock transferred to various branches and then branches sale goods.

Costing run take place at manufacturing units only (not at branch for obvious reason).

COGS splitting is happening at PGI at factory as per the cost component structure.

Business's requirement is that the same COGS splitting shall be available at branches also and that is not happening as costing run and cost component structure is not there branches.

How we can achieve COGS split at various branch (splitting as per the origin manufacturing costing run), please help me in this regard.

Best Regards

Ruksana

[sanilbhandari · Accepted solution]

Hi

This functionality will work only if you have a cost component structure associated with the plant. If not, it will not work in any case. That is a standard design.

That said, why you need COGS Split at a branch, when all you are doing is selling only and no manufacturing is done. This does not need a break up like you need at a plant level. You should ask your business the rationale for the same from a process perspective.

Regards

Sanil Bhandari

[Former Member]

Hi,

what is the org unit in your case Branch? And what kind of movement do you have in this process described by you?

Any way COGS split in account based COPA works only for GI, it means that actual costing is not in the scope (at least up to release 1605)

[Former Member]

Dear Expert,

Any thought please?

Regards

Ruksana

[Former Member]

Hi Ruksana,

Why don't you think of transferring the released cost estimate from Manufacturing plant to Branch using Special procurement key.

Using this feature, you can transfer the released cost estimate to other plant. Then Cost component structure would be available for COGS split.

Can you try this and share your results with us...

Regards

Karthik

[former_member222105]

Hello,

COGS Split availability at Branches can be achieved, if each Branch is treated as strategic business unit and assigned each plant with corresponding Strategic Business Unit (Say Profit Center).

Every Material and Cost Center Have Profit Center, and the Split of COGS will determine the profit center from Corresponding Material and Cost center.

Create a profit center derivation rules, in such a way that, the COGS Split triggers the respective Profit centers which in turn determine the Branch Profit center.(SBU/Profit Center).