Is it mandatory to have COGS Account as Cost Element for Account Based COPA

[Former Member]

Hi SAP Gurus,

Let me start with some back ground for the issue i am facing.

Our client does not want to hit the COGS Account during post goods issue on delivery, instead we are using a B/S Clearing Account "Shipped & Invoice Clearing Account" instead of COGS on post goods issue.

So, following is the posting on PGI

Ship & Invoice Clearing A/c Dr

To  Inventory Account

Now during Billing we have created one accrual condition which clears the "Ship & Invoice Clearing" Dr & post the amount to COGS account during billing.

So, on billing posting is as below :

Customer Dr

To Revenue

COGS Dr

To Ship & Invoice Clearing A/c

Note : This is to make sure that there is no time when COGS & Revenue are not in sync due to the time lag in Delivery and Billing.

SUMMARY OF ISSUE

The above was working fine when we tested above for Cost Based COPA, however when we moved to account based COPA it is giving below error during PGI.

"Message K/111 Error Occured in Derivation Rule"

i.e. system is trying to perform a COPA derivation even for the "Ship & Invoice Clearing A/c", which is a B/S Account.

Has anyone faced a similar issue.

Also for now, I checked the movement type 601 config in T.code OMWN to see what is the setting for Account Assignment for GBB/VAX it was checked, so I removed it for the time being, but am not sure what impact it might have for other scenarios.

Thanks,

Ankur

[kamalkumar_biswas2]

Hi Ankur

   Basically you have changed the standard logic of PGI posting and shifted from Delivery to Billing by creating an intermediate a/c "shiping clearjng etc" and through accrual condition posting the same at the time of billing.

   At the time of costing based copa it will not through any error because COGS is not a CE a/c and has got no CO object relation...normally at the time of PGI  off setting a/c is posted through GBB/VAX (W/o CE)

   But when you going to Account based copa derivation is triggering at GL level where at delivery it gets your "Shipping clearing a/c" (may be B/S) defined in GBB/VAX

   Now your last question: But if you removed your assignment from GBB/VAX how PGI will happen? that is the question. I think that's not possible....

[Former Member]

Thanks Kumar for understanding the Scenario and responding.

However my issue is :

a) As system is accessing same GBB/VAX (W/o Account Assignment) why is it asking for cost element when I activated account based COPA and giving error for COPA derivation. It should not go to COPA at all.

b) And to avoid that if I remove the account assignment check in T.code OMWN, what can be the possible impact.

Note : After unchecking the checkbox I was able to post the entry correctly.

Thanks,

Ankur Goel

[kamalkumar_biswas2]

Hi

First of all either you do costing based COPA or accounts based COPA which is ideally smooth functioning.

In OMWN when you un-check the check box system will allow to post without any CO assignment and basically required for accounting based COPA

In your case system behavior, I think due to accrual condition and please check whether you have made any default setting of your BS GL in OKB9