What is Profitability: Cost of Goods Sold Earned in SAP SRD-FIN-ACC - FIN-Financial Accounting?

SAP Term: Profitability: Cost of Goods Sold Earned

• Component: SRD-FIN-ACC

• Component Name: FIN-Financial Accounting

• Description: A key performance indicator KPI that reflects the cost of goods sold COGS, also known as cost of sales, for a given period and the revenue that was paid for those goods also in the same period. COGS relates to the cost of products or goods that a company sells. This Key Performance Indicator KPI shows the cost of the product or goods that a company sells to generate revenue and appears on the income statement as an expense.

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• Key Concepts: 
  Profitability: Cost of Goods Sold Earned is a component of the SAP Financial Accounting (FI) module. It is used to calculate the cost of goods sold (COGS) for a company. This calculation is based on the cost of materials, labor, and overhead associated with producing a product or service. The COGS calculation is then used to determine the company's gross profit margin. 
  
  How to Use it: 
  The Profitability: Cost of Goods Sold Earned component of SAP FI can be used to calculate the COGS for a company. This calculation is based on the cost of materials, labor, and overhead associated with producing a product or service. The COGS calculation can then be used to determine the company's gross profit margin. 
  
  Tips & Tricks: 
  When using the Profitability: Cost of Goods Sold Earned component of SAP FI, it is important to ensure that all costs associated with producing a product or service are accurately accounted for in the COGS calculation. This includes both direct and indirect costs such as materials, labor, and overhead. 
  
  Related Information: 
  For more information on the Profitability: Cost of Goods Sold Earned component of SAP FI, please refer to the official SAP documentation at https://help.sap.com/viewer/product/SAP_FI/2020_05_500/en-US.