on 08-18-2007 1:07 PM
Hi,
I've been creating primary cost elements for cost and revenues accounts.
I have already created cost elements for revenues, but I have some doubts about an account Cost of Goods Sold. Do I have to make cost element for it?
SD module is being implemented and revenues and cost of goods sold will be posted on SD orders.
CO-PA will not be used.
What is the best solution? Should I create cost elements for Cost of goods sold Account and if YES, which cost element type should I choose (1 or 11?)
Best wishes,
Karol
Hi Karol
Do not create COGS as cost element.
COGS should not be posted to a cost center
I
For GOGS postings do following Accnt Determination setting - GBB - VAX
The above posts GOGS to financials without account assignment object
Please assign points as a gesture of thanks
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Hi
Profit centers posting will be as follows
1) When u assign profit center in the material master - all costing transactions - material consumptions, change in stock and cogs entries are posted
On delivery of FG material against sales order COGS entry is posted in FI and system automatically posts PCA document both for revenues and COGS to the profit center assigned to the FG item in the material master
All profit center postings for a material are controlled thru Material Master assignment
and all cost center postings are thru assignment of profit center in each cost center
Hope the a above gives u clarifications. Please assign points
Let me know if u need further assistance on this
Thank you very much! Your answer solved my problem.
I have one more question about profit centers assignment to material master.
I have divided my profit center hierarchy in such a way - that I could easily prepare a COS profit and loss statement using them. Basically I have such profit centers like:
- Profit on sale of Goods
- Profit on sale of Materials
- Profit on sale of Service
- Costs of Production
- Other costs of sales
- Costs of Administration
As you can see I didn't reflect in this hierarchy an organization structure.
I was wondering which profit center could be used for Material master assignment.
I know that for sales order there has to be assigned one of:
- Profit on sale of Goods
- Profit on sale of Materials
- Profit on sale of Service
But I don't know whether it is OK to use them for materials master assignment. Can you suggest me some solution? I think that there should be different profit centers for goods and different profit centers for materials.
Hi
I need to understand your business scenario a bit. What are products manufactured. The profit center definitions looks like GL account defns which looking at them i am not comfortable
Let's discuss this in detail - first gv me the business scenario and what the client requirements are for Profit centers
will definitely help u out
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