What is cost of goods sold in SAP CO-PC - Product Cost Controlling?

SAP Term: cost of goods sold

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: Sum of the costs incurred in the value-added process. The cost of goods sold consists of the following costs: Cost of goods manufactured Sales overhead Special direct cost of sales Administration overhead

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• Key Concepts: 
  Cost of Goods Sold (COGS) is a term used in SAP's CO-PC Product Cost Controlling component to refer to the total cost of producing a product or providing a service. This includes the cost of raw materials, labor, overhead, and other expenses associated with the production process. COGS is used to calculate the gross profit of a company and is an important factor in determining the profitability of a business. 
  
  How to use it: 
  In SAP's CO-PC Product Cost Controlling component, COGS can be calculated by entering the cost of raw materials, labor, overhead, and other expenses associated with the production process into the system. The system will then calculate the total cost of goods sold and display it on the screen. This information can then be used to calculate the gross profit of a company and determine its profitability. 
  
  Tips & Tricks: 
  When calculating COGS in SAP's CO-PC Product Cost Controlling component, it is important to ensure that all costs associated with production are accurately entered into the system. This will ensure that the total cost of goods sold is accurately calculated and that the gross profit of a company is accurately determined. 
  
  Related Information: 
  In addition to calculating COGS in SAP's CO-PC Product Cost Controlling component, it is also possible to use other components such as FI-GL General Ledger Accounting and MM-IM Inventory Management to track costs associated with production. This information can then be used to calculate the total cost of goods sold and determine the gross profit of a company.