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Recognition of COGS over a period of time.

Received Response
edited Oct 13, 2020 5:57PM in Costing 3 comments



We have a specific business scenario, wherein we do create recurring bills for the hardware (Tangible lines).

AR processes the bills as expected on the monthly frequency, However, when we do so, the COGS in the cost management is recognized multiple times which we expect to be recognized over a period of time.

For ex.

Laptop sold at 24000 and monthly bills were created with the frequency of 12 i.e per bill 2000/-
but when it comes to COGS Recogn.

Cost management provides two accounting events, (Current actual cost =12000/-)

SO Issue: DCOGS Dr. to Inventory Cr.

COGS recog : COGS Dr. to DCOGS Cr. --> 12000/- ( On the first bill)

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