Deffered cost of goods sold account.

[srinivas.oebs]

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

[hiszaki]

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