CO. Account-Based CO-PA

  • Up to 60 Characteristics can be defined.
  • Split of Cost of goods sold posting on multiple account (by cost component)
  • The COGS posting includes all costs for manufacturing the product such as labor or material cost.
  • Split of production variances posting on multiple accounts (differentiation of price/quantity effects)

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Refined of Cost of goods sold postings.

Goods issue to sales order results in a posting containing following line items:

  • Line item crediting an Inventory account
  • Line item debiting an Expenses account

Different accounting principles use different income statement methods.

For example: US GAAP requires income statement by function, where in India GAAP requires income statement by nature.

Depending on the income statement method used, the account to the debit line represents:

  • Changes in Inventory of Finished goods for income statement by nature
  • Costs of goods sold for income statement by function.