on 10-12-2007 12:20 PM
hi guru`s
what is cogs.what is the significance of that.
thanks in advance
guruveer
Hi Guruveer,
Hope your problem is solved.
please closed thread as answered and reward point to the useful answer.
regards/ashu
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HI !
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When a PGI is posted, the following entry is affected :
1. Cost of Goods Sold Dr 100
To Inventory Account Cr 100
Here the Cost of Goods Sold is an FI entry and Inventory Account related to MM but both of them gets affected immediately when you post a PGI in SD.
The updation of these entries when PGI is done is called Real Time Integration. The affect is shown in all FI, MM and SD modules once you save the entry.
The configuration for the below entry is done in <b>OBYC</b>
1. Cost of Goods Sold Dr 100 (T-Key GBB)
To Inventory Account Cr 100 (T-Key BSX)
The automatic entries are posted to inventory accounts through T-keys to which GL accounts are assigned. These T-keys are assigned to movement types in MM. Please refer to T-code <b>OMWN</b> and <b>OMWB</b> for proper understanding.
Thanks
G. Lakshmipathi
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Hi Guru
Calculation of the Cost of Goods Sold
Use
The cost of goods sold includes all the costs arising from the company activities involved in making a product. The cost of goods sold comprises the cost of goods manufactured, and sales and administration overhead costs.
Costing enables you to calculate the cost of goods sold for each product unit, and to transfer the costing results to Profitability Analysis.
Integration
You can transfer the cost of goods sold to Profitability Analysis when you do the following:
Assign the cost components containing the cost of goods manufactured and the sales and administration costs to the value fields of an operating concern and link these values to the Sales volume quantity field
Define a selection strategy which points to the appropriate costing variant and costing date
Link the selection strategy with the materials or material types to be valuated
You make the necessary settings to transfer data from the cost estimate into Profitability Analysis in Customizing for Profitability Analysis. For more information, see Transferring Data to Profitability Analysis.
You can find additional information about Profitability Analysis in the R/3 Library under Profitability Analysis (CO-PA).
Features
In the R/3 System, you can assign the sales and administration costs to a product by creating an appropriate costing sheet in Customizing for Product Cost Planning.
The costing sheet specifies the following:
The production and material overhead applied to products
The sales and administration overhead applied to products
The costing sheet is also used to determine a process template to calculate process costs.
The costing sheet thus specifies the cost elements under which the sales and administration costs are updated in costing. The cost component structure determines the cost components under which these costs are shown. It flags these cost components as sales and administration costs.
In make-to-order production, the sales and administration costs are generally assigned to the product as overhead surcharges. The cost of goods sold for the product is passed on to Profitability Analysis. ( See also: Product Cost by Sales Order)
In order-related production, repetitive manufacturing and process manufacturing, the sales and administration costs are generally passed on from Cost Center Accounting directly to Profitability Analysis. The cost of goods manufactured for the product is passed on to Profitability Analysis. ( See also: Product Cost by Order or Product Cost by Period)
The below link will help u
http://help.sap.com/saphelp_45b/helpdata/en/7e/cb7eba43a311d189ee0000e81ddfac/content.htm
Reward if useful to u
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Hi Guruveer,
COGS is the cost of goods sold by an organization. It is a very important field as the Profit and Loss Account Statement would have the COGS as one factor. When you do a PGI in the delivery document the COGS value is updated.
In the P/L statement the Gross Profit is caluclated as Sales Revenue minus the Cost of Goods Sold.
Regards
Nadarajah Pratheb
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Hi
cost of goods sold (COGS)
Refer SAP help link below
http://help.sap.com/saphelp_crm40/helpdata/en/7e/cb7ead43a311d189ee0000e81ddfac/content.htm
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hi
cogs means cost of goods sold
when u do pgi the cost of goods is increased and the inventory stock is reduced
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