Activating Cost of Sales Accounting 

Purpose

You can activate cost of sales accounting in your system.

Process flow

To do this, you need to make various settings. You make these settings in Customizing, under Financial Accounting ® Financial Accounting Global Settings ® Company Code ® Cost of Sales Accounting.

  1. Define your functional areas. To do this, choose Define Functional Area.
  2. Activate cost of sales accounting for preparation. To do this, choose Activate Cost of Sales Accounting for Preparation.

    3. The functional area field in the master data of the objects is ready for input.

    The functional area is not yet derived for postings.

  3. Enter the functional area in the master data of the desired objects.

    4. For more information, see Functional Area in Master Data.

  4. In addition, you can define a substitution for derivation of the functional area. To do this, select the activities under Setting up Substitution for Cost of Sales Accounting.

    5. You should only define a substitution if you have additional requirements for the derivation of the functional area. Check beforehand whether if would suffice to enter the functional area in the master data of the objects.

  5. Define a ledger for cost of sales accounting. To do this, choose Set up Ledger for Cost of Sales Accounting.
  6. Activate cost of sales accounting for your company codes. To do this, choose Activate Cost of Sales Accounting.

Result

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

It is possible to create a profit and loss statement with cost of sales accounting. To do this, see Creating Profit and Loss Statement with Cost of Sales Accounting.