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Apr 27, 2011 at 06:14 AM

Cost of Goods Sold - Cost Element

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Dear All,

Normally COGS a/c will not be created as a cost elemnt.Is there any specific reason for this? The client is asking the white paper on why COGS a/c not required to be as a cost element.

As per the client requirement (Distribution and Trading Business),Iam forced to define COGS account as a cost element.

I request you all to provide the detailed explanation on the COGS a/c as to why this account not to be defined as a cost element.If defined what are the consequences.

Note that in our client scenario,we have more than 1000 Profit centers and Cost Centers.

Thanks in advance.

Subbu