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SAP Cost of Goods Sold Splitting in Margin Analysis

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195 views12 pages

SAP Cost of Goods Sold Splitting in Margin Analysis

Uploaded by

ahmedfaragzohairy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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MARGIN ANALYSIS

VALUATION WITH PRODUCT


COSTING
CO-PA Profitability Analysis
SAP S/4 HANA
How are the results of product costing integrated with CO-PA?

The Product Cost Controlling (CO-PC)


module is used to generate the
product cost estimates for materials.
The results of a product cost estimate
can be viewed in different ways, such
as by item, cost element, or cost
component. Through cost component
values, valuation pulls the product
cost estimate information from CO-PC
and transfers the estimates to CO-PA.
The valuation function can be used to
import the extensive cost of sales
information into CO-PA for flexible
margin reporting.
Reconciled Margin Analysis – Refinement of Cost of Goods Sold
Cost of Goods Sold Important Configuration Steps

Cost splitting profile: The cost splitting profile defines how COGS is split up into different accounts
based on cost components.
Example: Source
Account
54083000
Inventory Change

Cost Cost Cost


Component Component Component
9 Material
1 Raw Material 2 Setup
overhead

Target Account Target Account Target Account


50301000 50306000 50303000
COGS Direct Material COGS Setup Time COGS Material Overhead
Cost of Goods Sold Important Configuration Steps

1. Define a cost splitting profile and assign it to a


company code. This determines the chart of
accounts used for the cost splitting profile. Define
a cost splitting profile and assign it to a controlling
area. If you select Account-Based Split, COGS is
always split, for example
• Stock transfers - Inter-company sales - Third-
party sales - Sales processes posted to
internal orders - Sales processes posted to
projects - Internal processes in Financial
Accounting or Controlling, such as FB01 and
FB50
Configuration Path: SPRO / General Ledger
Accounting / Periodic Processing / Integration /
Materials Management / Define Accounts for
Splitting the Cost of Goods Sold.
Cost of Goods Sold Important Configuration Steps

• For each entry under Source Accounts, select Strategy Sequence and define a priority sequence of
strategies to be used as the basis for the split. The system tries to split the cost of goods sold based
on the first priority in the sequence. If this is unsuccessful, it tries the next strategy in the sequence
and so on.
Cost of Goods Sold Important Configuration Steps

• Under Target Accounts, enter the account for each cost component in the cost component structure.
Define one of the accounts as the default. Amounts for cost components for which no target account is
specified will automatically be posted to the default account. When you assign target accounts to cost
components, all cost components in the cost component structure are available for selection, including
cost components for sales and administration costs. However, when the COGS split is posted, only cost
components that are marked as Cost of Goods Manufactured are used.
• Offsetting Accounts: If you don’t want the original COGS account to be cleared, you can specify an
offsetting account for each entry under Source Accounts and Valuation Views. You need to do this for
example if you have reports that compare the originally posted costs with the actual costs of the material
ledger.
• Under Company Code Settings, assign the cost splitting profiles to company codes. Each company code
needs to use the same chart of accounts as the controlling area assigned to the cost splitting profile.
• Under Document Type Mapping, you can specify a document type to be used instead of the original
document type of the COGS split. The COGS split document always uses internal number assignment. If
the original document type uses external number assignment, specify a mapping for internal number
assignment.
Cost of Goods Sold Important Configuration Steps
Cost of Goods Sold Splitting Practice Exercise

• Material cost estimate with quantity structure


Cost of Goods Sold Splitting Practice Exercise

• Goods Issue accounting documents


Cost of Goods Sold Splitting Practice Exercise

• First accounting document review


Cost of Goods Sold Splitting Practice Exercise

• Second accounting document review (COGS Split)

• Remark: An additional
accounting document is
created with the COGS
splitting information.

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