cogs account in mto

[Former Member]

hello,

I need some advise on the COGS account in an MTO scenario.

1) Sales Order triggers MRP

2) Production Order for finished goods and PO for BOM components for FG are created.

3) Costs are collected on the production order.

4) at the delivery of the sales order the accounting entry hits the Cons - Finished Gds and the inventory.

Shouldn't it hit the COGS account instead of Cons - Finished Gds?

another thing to note is we are on Account-based COPA and the COGS is a cost element.

Please advise.

Raj

[Former Member]

I was able to resolve this by changing the AcctAssi Category in the requirement class from E to M.

Thanks,

Raj

[former_member198650]

Hi Raj,

Check the GL account assigned for the account modification VAX for t.key GBB in OBYC. There is no need to create a cost element for COGS account.

Regards

Mukthar

[Former Member]

GBB-VAX shows the account as the COGS account. But the account being determined is from GBB-VKA. The only way I see is to change the Account modifier from VKA to VAX on the Account assignment Category E in the Purchasing.

[Former Member]

But I want to know if that is correct. And also whether it should go to Consumption or COGS account.