WN 1809 – COGS : 4.1.1.6 COGS Split Based On Actual Cost Component Split

COGS = Cost of Goods Sold

COGM = Cost of Goods Manufactured

  • COGM = Material + labor + Manufacturing Overhead
  • COGS = COGM + Sales Overhead

  • Cost of goods sold (COGS) is the aggregate of amounts spent on selling a finished material to a customer
  • It includes multiple cost components
  • In SAP S/4HANA, there is a new feature which splits the COGS based on cost component of standard cost estimate or actual cost estimate
    • When COGS is posted at the time of delivery, cost components of standard cost estimate is considered
    • When COGS is revaluated during actual costing (CKMLCP), revaluation amount is split based on actual cost component delta split. This feature is released in S/4HANA 1809

You now have the option of splitting the cost of goods sold revaluation amount based on the actual cost component delta split instead of the cost component split for the standard cost estimate. The COGS revaluation amount is then split during the revaluation run that takes place with the Post Closing step after actual costing (transaction CKMLCP)

Customizing : SPRO > FI > GL Accounting > Periodic Processing > Integration > MM > Define Accounts for Splitting the Cost of Goods Sold

The Split Revalued Consumption with Actual Cost Component Split option allows you to split the cost of goods sold revaluation amount based on the actual cost component delta split. If you don’t select this option, the revaluation amount will be split based on the standard cost estimate

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