Calculation of COGM and COGS

Use

You can use the Product, planning functions to calculate, the cost of goods manufactured (COGM) and cost of Go ODS sold (COGS) for products such as materials and services. The costs is analyzed and business decisions (such as "Make or buy" decisions).

The cost of goods manufactured is composed of material and production costs, process costs and overhead (such as Material and production overhead). The cost of goods sold consists of the cost of goods manufactured together with sales and administration overhead Costs.

Features

The following graphic shows how the COGM and COGS is calculated using Product cost Planning:

To calculate the COGM and COGS for materials, you can execute a material cost estimate (with or without quantity structure ). For further information, see the following:

Material cost Estimate with Quantity Structure

• reference and Simulation Costing

  Before Costing, check all the settings on customizing for Product cost planning Apply to the calculation of costs. For further information, see the following:

  preparing for Costing:customizing

  You can use the following reports in the Product cost controlling information system to analyze the costs:

• itemization
• costed Multilevel BOMs

Calculation of COGM and COGS