Activating Cost of Sales Accounting

Process Flow

You make the following settings in Customizing under Start of the navigation path Financial Accounting (New) Next navigation step Financial Accounting Global Settings (New) End of the navigation path:

  1. Define your functional areas:

    Choose Start of the navigation path Ledgers Next navigation step Fields Next navigation step Standard Fields Next navigation step Functional Area for Cost of Sales Accounting Next navigation step Define Functional Area End of the navigation path.

  2. Choose Start of the navigation path Ledgers Next navigation step Fields Next navigation step Standard Fields Next navigation step Functional Area for Cost of Sales Accounting Next navigation step Activate Cost of Sales Accounting for Preparation End of the navigation path.

    This sets the Functional Area field as being ready for input in the master data of the objects, but the functional area is not yet derived during posting.

  3. Add the functional area to the master data of objects:

    Choose Start of the navigation path Ledgers Next navigation step Fields Next navigation step Standard Fields Next navigation step Functional Area for Cost of Sales Accounting Next navigation step Enter Functional Area End of the navigation path. For more information, see Functional Area in Master Data.

  4. You can also define a substitution for deriving the functional area.

    Choose Start of the navigation path Tools Next navigation step Validation/Substitution Next navigation step Define and Activate Substitution for Cost-of-Sales Accounting End of the navigation path.

    Note Note

    Define a substitution only if you have additional requirements regarding the derivation of the functional area. Before defining a substitution, check if it suffices to add the functional area to the master data of the objects.

    End of the note.

  5. Activate cost of sales accounting for your company codes.

    Choose Start of the navigation path Ledgers Next navigation step Ledger Next navigation step Activate Cost of Sales Accounting End of the navigation path.

    Note Note

    To display cost of sales accounting, cost of sales accounting must be active for the company code and the corresponding ledgers.

    End of the note.

Result

You have activated cost of sales accounting. The functional area of postings is derived by the system. For more information, see Derivation of the Functional Area.

You are now able to create a profit and loss statement based on cost of sales accounting. For more information, see Creating Financial Statements According to Cost of Sales Accounting.