Activating Cost of Sales Accounting 

Process Flow

Make the following settings in Customizing for Financial Accounting (New), under Financial Accounting Global Settings (New):

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       1.      Assign the scenario Cost of Sales Accounting to all ledgers in which you want to use it.

Choose Ledgers → Ledgers → Assign Scenarios and Customer Fields to Ledgers. If you do not use parallel ledgers, assign the scenario Cost of Sales Accounting to the leading ledger.

       2.      Define your functional areas:

Choose Ledgers → Fields → Standard Fields → Functional Area for Cost of Sales Accounting → Define Functional Area.

       3.      Choose Ledgers → Fields → Standard Fields → Functional Area for Cost of Sales Accounting → Activate Cost of Sales Accounting for Preparation.

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

       4.      Add the functional area to the master data of the desired objects:

Choose Ledgers → Fields → Standard Fields → Functional Area for Cost of Sales Accounting → Enter Functional Area. For more information, see Functional Area in Master Data.

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

Choose Tools → Validation/Substitution → Define and Activate Substitution for Cost of Sales Accounting.

You should only define a substitution if you have additional requirements for the derivation of the functional area. First check whether it would suffice to add the functional area to the master data of the objects.

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

Choose Ledgers → Ledgers → Activate Cost of Sales Accounting.

For cost of sales accounting to be portrayed, it must be active for the company code and the corresponding ledgers.

Result

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

You can create a profit and loss statement according to cost of sales accounting. For more information, see Creating Financial Statements According to Cost of Sales Accounting.