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C_TFIN22_65 · Question #46

A customer using account based CO-PA sells material from stock. How is the 'cost of goods sold' transferred and valuated?

The correct answer is B. Material costs are taken from the goods issue posting (valuated according price control). In account-based CO-PA, when material is sold from stock, the Cost of Goods Sold (COGS) is transferred from the goods issue posting and is valuated based on the material's inventory price control.

Profitability Analysis (CO-PA)

Question

A customer using account based CO-PA sells material from stock. How is the 'cost of goods sold' transferred and valuated?

Options

  • AMaterial costs are taken from the goods issue posting (valuated with cost component
  • BMaterial costs are taken from the goods issue posting (valuated according price control).
  • CMaterial costs are taken from the billing document (valuated with cost component structure).
  • DMaterial costs are taken from the billing document (valuated according price control).

How the community answered

(21 responses)
  • A
    5% (1)
  • B
    76% (16)
  • C
    14% (3)
  • D
    5% (1)

Why each option

In account-based CO-PA, when material is sold from stock, the Cost of Goods Sold (COGS) is transferred from the goods issue posting and is valuated based on the material's inventory price control.

AMaterial costs are taken from the goods issue posting (valuated with cost component

Account-based CO-PA typically does not use a cost component split for COGS at the time of goods issue directly; it takes the full inventory value according to the price control.

BMaterial costs are taken from the goods issue posting (valuated according price control).Correct

For account-based CO-PA, the COGS is recorded at the time of goods issue from inventory. This value is directly taken from the inventory valuation, which is determined by the material's price control (standard price 'S' or moving average price 'V').

CMaterial costs are taken from the billing document (valuated with cost component structure).

The billing document primarily records revenue and related conditions, while COGS is typically recognized at goods issue, not from the billing document itself.

DMaterial costs are taken from the billing document (valuated according price control).

COGS is recognized at goods issue, not from the billing document, although price control is relevant for its valuation, the timing of the transfer is incorrect in this choice.

Concept tested: Account-based CO-PA COGS valuation

Source: https://help.sap.com/doc/saphelp_erp600_ehp07/latest/en-US/c0/0e4854f3b754e6100000000a174cb4/frameset.htm

Topics

#account-based CO-PA#cost of goods sold (COGS)#goods issue#price control

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