What is cost of goods sold in SAP CRM-CHM - Channel Management?

SAP Term: cost of goods sold

• Component: CRM-CHM

• Component Name: Channel Management

• 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 the CRM-CHM Channel Management component of SAP to refer to the total cost associated with producing and selling a product or service. This includes the cost of materials, labor, and overhead expenses. COGS is used to calculate the gross profit of a business. 
  
  How to use it: 
  In SAP, COGS is used to track the cost associated with producing and selling products or services. This information can be used to calculate the gross profit of a business. It can also be used to analyze the profitability of different products or services. 
  
  Tips & Tricks: 
  When calculating COGS in SAP, it is important to include all costs associated with producing and selling a product or service. This includes materials, labor, and overhead expenses. It is also important to ensure that all costs are accurately tracked and accounted for in order to get an accurate picture of the profitability of a business. 
  
  Related Information: 
  COGS is closely related to other financial terms such as gross profit, net profit, and operating expenses. Understanding these terms can help businesses better understand their financial performance and make informed decisions about their operations.