COGS value reversed in COPA, but PGI value still exists in FI

[Former Member]

Hi All,

We are using cositng based COPA in our company. We have mapped VPRS to a value field in COPA. Through this mapping the value of COGA flows into COPA during billing. However, during reconciliation of FI with COPA, I found that while values for COGA (PGI) exist in FI (in the COGA GL account), the same are reversed in COPA.

This is becasue the Billing document was reversed in SD however, the corresponding PGI was not. Hence, we are not able to recponcile COPA with FI.

How can we handle these cases. Moreover, the transaction KEAT is not able to depict any difference between COPA and FI on this account.

[Former Member]

Hi

I would like to understand the scenario better - why would we reverse / cancel the billing doc? To me this is not the correct process as i would now have COGS in my financial books without the corresponding Revenue in the relevant period.

As you know, COGS reconciliation between COPA & FI GL is a complex area. I recommend the use of an additional VF (Value Field) to capture the FI COGS. This VF gets the COGS at the time of the PGI. The idea is that at any time, we should be able to reconcile FI GL COGS with this VF amount. The next step would be to capture the COGS at the time of the customer invoicing using VPRS or the detailed valuation method approach (cost component split). With this approach we can easily reconcile COGS between FI & COPA. Thiese could be PGIs not billed or Invoices cancelled but the PGI has not been reversed, etc.

Based on the individual circumstances, we can use the same VF to capture both the values and differentiate them by the Rec Type (Rec B for the FI COGS during PGI while Rec F has the COGS from the billing step).

Regards

Lalit

[Former Member]

Hi..

For reconciling the cogs value of FI and CO-PA, You should execute billing document after you issue product to customer and you should cancel PGI document related to billing after you cancel

billing document.