Accounting of selling expenses and cost of goods sold in management accounting

Here you will learn how to set up accounting for expenses allocated to the cost of goods sold, including:

• Cost of goods and services sold (accounting is kept broken down by items).
• Selling expenses (accounting is kept broken down by expense items).

The application automatically identifies the cost of goods and services sold by receiving data from inventory cost accounting. If lot accounting is enabled in the infobase, the application automatically picks a goods lot for the sales document and identifies the cost of goods and services sold based on it.

A cost pool of selling expenses is an Expense item. Cost pools are not applied for Cost centers. Within the Period-end closing procedure, selling expenses must be fully allocated to the cost of goods and services sold. Here you will also find out how to set up cost allocation to the cost of goods sold.

Within the application, you can account for the cost of goods sold by the Line of business dimension. The Lines of business dimension for the cost of goods sold depends on the Line of business dimension values that are set for its revenue or income.

The cost of goods and services sold that includes the allocated selling expenses must be fully allocated to the company's profitability & cost.

You can set this up after you configured: