COGS required Costelements?

[Former Member]

Hi,

I have create the cost elements for COGS account and Assigined cost center in default Account asignment but genrally we have assigend profit centers in material masters

and there is there requirement to give cost element for cogs

Regards

Rammohan

[Former Member · Accepted solution]

Hi

You can create COGS as cost element and make your CO assignment in OKB9 for a permutation of cost centres & profit centres.

[Former Member · Accepted solution]

COGS account should be created as Cost Element as Primary since the assignment of Cost Object is " Sales Order".

Please mind that Sales Order is also one type of Cost Object.

Regards,

[Former Member · Accepted solution]

HI all please tell me one thing why do we need to create COGS as a cost element

as u say that sales order is also a cost object i agree with it but if it is a cost object then in that case he need not assign a defualt co object to the cogs as system should take the sales order no as co objet and that system is nto doing so this option is ruled out

next why i am stressing on the cogs as not to be cost elment as while doing the good issue for the production of that final product then u durring the issue of componentws for that amterial systhem has already booked the consumption and so the cost of good is already with the CO module pepole

Please rectify me if i am wrong

[Former Member]

COGS account should not be created as cost element and therefore it is not required to assign with cost element

now question is why should i create it as a cost element and why i sholud not ??/

look cost element is created if i nee to pass on the entry to co through fi but in this case it is not required as while doing the gr against production order entries are already passed to CO module through work centers and material consumption accounts.

[Former Member]

COGS need to be a cost element only in cases of deliveries against sale orders ( Make to order scenario), you assign the G/L to VAY in OBYC. In all other cases, COGS should not be a cost elment and need to be assigned to VAX in GBB (off setting entries).

Thanks

Chris