Enable COGS Recognition upon Sales Order Line Close for Ship Only Lines

For ship-only sales orders, the cost of goods sold recognition uses the shipment date. However, you can configure costing to use the order line closed date as the accounting date for cost of goods sold recognition.

If you use a third-party billing system and rely on a proof of delivery or a similar event to recognize revenue and cost of goods sold, you can ensure that the cost of goods sold and the revenue recognition both use the proof of delivery date as the accounting date.

You need to create and enable the CST_USE_ORDER_LINE_CLOSE_DATE profile option to use the sales order line close date for ship-only sales orders as the cost of goods sold recognition accounting date.

1. From the Setup and Maintenance work area and locate the Manage Profile Options task:

   • Offering: Manufacturing and Supply Chain Materials Management

   • Functional area: Cost Accounting

   • Task: Manage Profile Options

2. Click Add to create a new profile option:

   • Profile Option Code: CST_USE_ORDER_LINE_CLOSE_DATE

   • Profile Display Name: Use Order Line Close Date for Cost of Goods Sold Recognition

   • Application: Cost Management

   • Module: Cost Management

3. Navigate to Manage Cost Accounting Profile Options UI from the Setup and Maintenance work area.
4. On the Manage Cost Accounting Profile Options page, search for the CST_USE_ORDER_LINE_CLOSE_DATE profile option code.
5. Select New from the Actions menu under profile values.
6. Select the profile level as Site and profile value ad Y.
7. Click Save and Close.

Note: This profile option is applicable only for the ship-only flows.