Hi,
Would you please any one let me know what is the use of Deffrered cost of googds sold account and where it can be used.
Regards,
Srini
Deffered cost of goods sold account.
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- Posts: 35
- Joined: Wed Feb 23, 2011 9:56 am
- Location: Bermuda
Hi Srini
Deferred COGS is a new account used in R12. In 11i, when the sales order shipped, the account generated:
Dr. COGS
CR. Inventory - finished goods material
But in R12, the DCOGS is intermediate account used to calculate the actual COGS for each transaction.
SO when you shipped the sales order (quantify = 100), the account will be:
Dr. DCOGS
CR. Inventory - finished goods material
Then when the AR invoice created, the account generated:
Dr. Customer
Cr. Revenue
There are 3 requests running after the AR invoice are created transfer the value from DCOGS to COGS to insure that all value in COGS has AR invoice.
Hope I can help you.
Thanks
Hisham
Deferred COGS is a new account used in R12. In 11i, when the sales order shipped, the account generated:
Dr. COGS
CR. Inventory - finished goods material
But in R12, the DCOGS is intermediate account used to calculate the actual COGS for each transaction.
SO when you shipped the sales order (quantify = 100), the account will be:
Dr. DCOGS
CR. Inventory - finished goods material
Then when the AR invoice created, the account generated:
Dr. Customer
Cr. Revenue
There are 3 requests running after the AR invoice are created transfer the value from DCOGS to COGS to insure that all value in COGS has AR invoice.
Hope I can help you.
Thanks
Hisham
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