What is COGS?
Cost of goods sold (COGS) is the total amount spend to manufacture a product which can be sold. COGS includes only direct costs like labour and raw-material and it does not include indirect costs like sales, marketing or distribution.
Formula to calculate COGS:
COGS = Opening Stock + Purchase of Stock during Period – Closing Stock
Importance of COGS Report
The Cost of Goods Sold Report (COGS) is necessary because it helps the organization to calculate the profit before adding company adminstrative charged.
IUser can use Product Cost Planning functions for calculating the Cost of Goods Sold (COGS) of any products in SAP. This costs can help company to make business decisions (like whether to make or buy).
How to Get COGS Report? Is there any standard report available in SAP?
Please use this report in order to get COGS report in SAP: