If you don’t maintain a valuation, the splitting will happen for all valuations that exist. In the Valuation View column, you can maintain a specific valuation, such as a group valuation. In the example, you’re maintaining G/L account 54083000 for inventory change COGS as the Source Account. The accounts for the goods issue are maintained in the materials management account determination with Transaction GBBVAY. The Source Accounts are the G/L accounts that get hit when the goods issue for the delivery is posted. Use New Entries or (F5) to maintain the Source Accounts (see next figure).

Mark your C ost Splitting Profile by selecting the checkbox at the beginning of the line, and navigate in the left section of the screen to the Source Accounts folder. If you activate the checkbox in the Acc Based Split (account based split) column, the system will always split the cost into the cost components when there is a posting on the Source Accounts you’ll determine in the next section.įor this example, don’t select the checkbox because you only want the system to split the COGS based on movements of the sales order. The chart of accounts in the Chrt/Accts column will be derived automatically from the controlling area. For this example, you’re creating Cost Splitting Profile Z100 in the following figure and assigning it to CO Area Z100. With New Entries or (F5), you can create a new splitting profile. To configure the split of the COGS in margin analysis, follow the configuration path Financial Accounting > General Ledger Accounting > Periodic Processing > Integration > Materials Management > Define Accounts for Splitting the Cost of Goods Sold. Cost element category 1 has been chosen for Primary costs/cost-reducing revenues, and Primary Costs or Revenue has been chosen for G/L Account Type in the Type/Description tab.Īfter you’ve created all the G/L accounts necessary for the COGS split, you can start with the configuration. Direct material is a cost component in the cost component structure. In the figure below, G/L Account 50301000 for COGS Direct Material is being created. In addition, SAP S/4HANA Finance enables you to split these costs according to the components of the cost component structure of the material cost estimate that has been used for inventory valuation.īefore you start configuring the split of the COGS, you need to create a G/L account with cost element category 1 for every cost component of the cost component structure. The posting for the goods issue still happens on the account that is maintained in the material account determination.

This account is defined in account determination of materials management with Transaction GBB-VAY (GBB stands for Offsetting Entry for Inventory Posting and VAY stands for Goods Issue for Sales Order). We know from the past that, originally, the goods issue in margin analysis has been posted to one G/L account according to the valuation class of the material. SAP S/4HANA Finance enables you to split the cost of goods sold (COGS) into the individual cost components according to the cost component structure of the material cost estimates.ĬOGS are posted in financial accounting and margin analysis when the goods issue to a delivery is posted.

Cogs journal entry