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author's profile photo Former Member
Former Member

Sales order cost estimate not happening because of GIT B/S account

Hi,

Requirement is to have Goods in Transit account in PGI and reverse it in Invoice no issues iwth it.

For the same sales order user wants to get cost using sales order cost estimate.

When i run that am getting following error

Item 00001 : Cost element 14001212 does not exist in CO area 0010 for 10/07/2011

Message no. KK689

Even though i maintain the CE for Balance sheet account with Cost element category 90 its not accpeting.

Can you please help me on how to proceed for sales order cost estimate.

Thanks,

sudha

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3 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Oct 08, 2011 at 07:03 AM

    H,

    Enter The T-Code=FSOO

    Select the respective GL accout

    Click the EDIT Cost Element

    Now enter Date=01/01/2011

    Enter Cost element category=1

    Regards,

    Raj

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  • author's profile photo Former Member
    Former Member
    Posted on Oct 10, 2011 at 07:11 AM

    Hi Sudha,

    Is your entry in PGI the following?

    GIT A/c Dr

    Inventory Account Cr

    And on invoicing,

    COGS A/c Dr

    GIT A/c Cr

    Customer A/c Dr

    Revenue A/c Cr

    The scheme of entries should be like this and this is a commonly followed practice. Now this GIT Account (or even COGS account) will never form part of your cost component structure and should not come in sales order cost estimate. Please correct me if you disagree. Else please revisit your design of cost component structure.

    Best Regards

    Vimal

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  • author's profile photo Former Member
    Former Member
    Posted on Nov 22, 2011 at 05:53 AM

    hi,

    if you give a balance sheet account in obyc , you will not be able to create a cost elementin category 01 , accordignly system will give error in sales order costing , as its not able to get correct cost element in cost planning.

    if your requirement is just to post cogs to a balance sheet account which is goods in transit and when invoice is done cogs to be posted.

    you should actually use revenue based RA functionality on sales order instead of assinging a balance sheet account in obyc.

    in this approach;

    - first assign a p/l account in obyc and create cost element in cateogry 01.

    - create revenue based RA and assign RA key in requirement class.

    - in OKG8 for RA category WIPR and your ra key assign , goods in transit account and give a offsetting account which is not cost element (credit entry in offsetting account nullify debit in account given in OBYC when GIT is posted , when billing is done system will automatically post a oppsite entry in both account).

    -in OKG8 for RA category COSR give the COGS account and a offsetting account without cost element (credit entry in offsetting account nullify debit in account given in OBYC when COGS is posted).

    regards

    rajesh

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