Deferred COGS Is Not Hit When Intercompany Shipment Is Done (Doc ID 549688.1)

Last updated on AUGUST 22, 2023

Applies to:

Symptoms

There are external sales orders that the Deferred COGS (Cost of Goods Sold) accounting is not processing as expected.
1- Sales Order from other Operating Unit (OU) is not using the D-COGS (Deferred COGS) account assigned but is defaulting to COGS account.
2- Sales Order completion does not relieve D-COGS accounts. Only the partial entries are completed.

When the shipment is made from the same OU, the deferred COGS account is used for the partial transaction, but does not relieve the account when the Sales Order (SO) is complete.

When the shipment is made from other OU, the deferred COGS account is not used and the item takes the default COGS account
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The D-COGS account for both OUs is using the same account with the only difference being the company segment.

Review of the setup shows the COGS account under Profit/Loss is one account number and the D-COGS account in the Other Accounts section is different.

Customer has run from Cost Mgt- SLA Responsibility:
Record Order Management Transactions
Collect Revenue Recognition Information
Generate COGS Recognition
these all complete successfully

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Profile Options for MOAC

For the HK Org

The issue can be reproduced at will with the following steps:
1- Create a Sales order that has 2 lines one line from 1 OU Org and one line from other OU Org
2- Run D-COGS processes
3- Confirm Cost Manager is running

Cause

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