What is cost of sales in SAP CO - Controlling?

SAP Term: cost of sales

• Component: CO

• Component Name: Controlling

• Description: The cost of goods manufactured for the products sold. The cost of goods sold can be compared against the sales revenues. The cost of goods sold does not contain costs for finished or semifinished products still in the inventory. Typically, the cost of goods sold is calculated at the point of goods issue. In contrast to the period accounting method, the posting is made to an account "Cost of goods sold" and not to "Change in stock." This can be defined in Customizing for goods issues.

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• Key Concepts: 
  Cost of Sales (CoS) is a term used in the SAP Controlling (CO) module to refer to the total cost of goods sold during a given period. This includes all costs associated with the production and sale of goods, such as raw materials, labor, and overhead. It is used to calculate the gross profit of a company. 
  
  How to use it: 
  In SAP Controlling, Cost of Sales is calculated by subtracting the cost of goods sold from the total sales revenue. This calculation can be done manually or automatically using the SAP system. The cost of sales can then be used to calculate the gross profit margin, which is the difference between total sales revenue and total cost of goods sold. 
  
  Tips & Tricks: 
  When calculating Cost of Sales in SAP Controlling, it is important to ensure that all costs associated with the production and sale of goods are included in the calculation. This includes both direct and indirect costs such as raw materials, labor, and overhead. 
  
  Related Information: 
  Cost of Sales is closely related to other financial metrics such as gross profit margin and net profit margin. It is also related to inventory management, as it helps to determine how much inventory should be kept on hand in order to maximize profits.