consumption

[Former Member]

Dear Forum,

I know that doc type WA where goods issue internally within the plant like against order or cost center.

When it is issued, inventory credited and consumption debited.

1 May I know why it is also considered as cogs? Anything which issued out from inventory is considered cogs no matter if it is issue to delivery to external party or internally use?

2 Meaning goods issue or consumption is considered as cogs?

Thanks

[Former Member]

HI,

1. Cost of goods sold (COGS), as name suggests is the value of Goods sold. When goods consumed internally it is not a sale and hence not called as COGS.

2. Above answer holds good for your second question also.

Hope this help.s

[Former Member]

Hi,

Thanks for your reply but you did not telling the answer of my question. You just corrected without giving me a direction.

Thanks

[Former Member]

Hi,

Cogs means cost of goods sold.What mean when invoice is done which amount of goods are send to the party.Means Cost of raw material,activity,overhead,selling exp included in COGS.

When goods issued for conumption that is not COGS.

Regards,

Sahoo

[Former Member]

Hi,

When goods issued for conumption that is not COGS, may I know what should I consider this goods issue as if it is not cogs.

Example like issue to cost center, order.

Thanks