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Former Member
Nov 20, 2012 at 08:47 AM

cost element for GI/GR prod order



wanna clarify the cost element used where this is costing based copa and use production order.

I was told that,

1 Goods issued to production order from raw mats stock is balance sheet related so not cost element. why? as it is debiting consumption account where cost object is production order. meaning this PL at debit side is not cost element but just a normal GL which will not flow to CO. why?

2 COGS is not a cost element as it is using SD condition. so meaning when pgi, cogs debited, this is just GL and not cost element so will not flow to CO. This I agree.

But I was told COGM is cost element. why? meaning when goods receipt from production order, 1 leg debit stock another leg credit cogm, this cogm at credit side is a cost element (tagged with production order) meaning it will be flowing to CO?