What's New Viewer - SAP S/4HANA

COGS Split Posted with Two Journal Entries

The cost of goods sold is posted to a single account that is defined in the settings for the account determination for material movements. In order to split the costs of goods sold based on the cost components of the underlying material cost estimate, you can activate the COGS split.

When goods are issued, the inventory value is determined and the Inventory Change account is debited. If the COGS Split is activated, the Inventory Change account is credited with the same amount, and for each assigned cost component a separate line item is posted to the assigned account.

Previously, only one journal entry was generated for the COGS split. With this release, two journal entries are generated that affect the Inventory Change account if the COGS split is activated.

Technical Details

Product Feature is

New

Country Dependency

Valid for all countries

Application Component

CO-PA

Availability

SAP S/4HANA 1610

Additional Details

As shown in the example below, two journal entries are generated for the COGS split. The Inventory Change account (400000) is defined as the COGS account. The Material and Labor accounts are the target accounts, based on the cost components.

  • The first journal entry debits the Inventory Change account and credits the Finished Goods Inventory account.

  • The second journal entry debits the Material and Labor accounts and credits the Inventory Change account.

Journal Entry 1

Account

Account Name

Debit

Credit

400000

Inventory Change

1000

220000

Finished Goods Inventory

1000

Journal Entry 2

Account

Account Name

Debit

Credit

400100

Material

650

400200

Labor

350

400000

Inventory Change

1000

Effects on Customizing

You can activate the COGS split in Customizing under Start of the navigation pathFinancial Accounting Next navigation step General Ledger Accounting Next navigation step Periodic Processing Next navigation step Integration  Next navigation step Materials Management Next navigation step Define Accounts for Splitting the Costs of Goods SoldEnd of the navigation path.