Wrong COGS Posting in PGI

[nilesh_dalal]

Hi Experts,

Issue:

We have a situation where PGI is posted on 26.03.2023 using T Code: VL02N (Debiting COGS & Crediting Inventory).

Post that Invoice was also issued to Customer & submitted to (ZATCA) Portal.

Later on business found out that the Standard Costing done for Finished Goods was very high (not correct).

Since Standard Cost Estimates were wrong there is a huge amount appearing in Profit and Loss and COPA reports.

Proposed Solution –

• As sales invoice is already submitted to ZATCA. We only left with “Manual Adjustment Journal Entry” to rectify this posting at primary cost element {GL Level}.
• We have to Debit Inventory GL {122000} A/c and Credit COGS GL {600000} A/c with the inflated cost,
• As a supporting to our Manual adj. Journal, we can attach this email as a matter of explanation to Auditors and Management

We have proposed above solution to business wherein a manual JV can be posted.

Above solution is correcting COGS in Finance only.... Is there any solution to correct COGS in COPA reports ??

So with this Finance and COPA reports will be in sync?

Regards,

Nilesh