CREATE COST OF GOODS SOLD ENTRIES

Use this screen to compute the Cost of Goods Sold (COGS) transfer journal entry. This entry transfers the Work In Process (WIP) project costs, which have been recorded per your setup, from the Balance Sheet to the Income Statement. These WIP costs are stored on the Balance Sheet until they are transferred to the Income Statement as COGS.

For more information on this screen and on Work In Process in general, see "Work in Process."

The timing of this process depends on your company's setup of the Manage Cost of Goods Sold screen for each project. In that screen, if you have selected Billed Amount, Estimate at Completion as the Calculation Method, create this journal entry after posting your bills. Execute the Compute Burden Costs screen after creating and posting the COGS journal entry. If you have selected an Estimate to Complete method, post bills and compute the burden before creating the COGS journal entry. This ensures the WIP costs have been updated for inclusion in the COGS entry. Run the Compute Burden Costs screen again after posting the COGS entry.

Location

Identification

Use the fields in this block to create a new parameter ID or to retrieve a previously saved parameter ID. A parameter ID represents a set of screen selection parameters. After you have saved a parameter ID and its related parameters, you can retrieve them using Query.

You can use the retrieved parameters to produce reports and run processes more efficiently and with greater consistency. The saved parameters are also useful and necessary when you want to run the process as part of a batch job. Many users save a unique set of parameters for each different way they run a report or process. When you select a previously saved parameter ID or parameter description, the associated saved screen selection parameters automatically display as selection defaults. The page setup and print options are also included in the saved parameter ID if there are any. You can change any of the associated selection defaults as necessary.

Parameter ID

Enter, or click to select, a parameter ID of up to 15 alphanumeric characters. Choose characters for your parameter ID that help identify the type of selections you made in the screen, such as PERIOD or QUARTERLY.

When you save your record, all the selections made in the screen are stored with the parameter ID. Later, you can retrieve the parameter using Query.

You can use the parameter to run the process more efficiently because you can select the parameter ID with its previously defined screen selections. After the default selections display in the screen, you can override the defaults.

Description

Enter, or click to select, a parameter description of up to 30 alphanumeric characters.

Selection Ranges

Projects

Use these fields to select the projects for which you compute the cost of goods sold entry.

Option

Enter or select the range of projects to include on the journal entry. Valid options are:

Start

Enter, or click to select, the starting project to include on the journal entry. If you select All or From Beginning in the Option field, this field is inactive.

End

Enter, or click to select, the ending project to include on the journal entry. If you select All, One, or To End in the Option field, this field is inactive.

Ending Subpd

Use these fields to identify the ending period you would like to use in the computation of the journal entry.

Option

This field always displays From Beginning.

Fiscal Year

Enter, or click to select, the ending fiscal year you want to use in the computation of the journal entry.

Period

Enter, or click to select, the ending period you want to use in the computation of the journal entry. Amounts incurred in periods up to and including this period are included in the journal entry.

Subpd

Enter, or click to select, the ending subperiod you want to use in the computation of the journal entry. Amounts incurred in subperiods up to and including this subperiod are included in the journal entry.

Ending Date

This non-editable field displays the subperiod ending date.

Options

Select Rate Type

Use the options in this group box to select the rate type you want to include in the journal entry. This selection should be consistent with the rate type used to post revenue. This selection is not used in the creation of the COGS journal entry unless the COGS Calculation Method is Billed Amount, Estimate at Completion, as selected on the Manage Cost of Goods Sold screen. This rate is used to compute indirect costs.

Actual

If you select this option, Costpoint uses the actual rate from the Pool Rates subtask of the Manage Cost Pools screen to calculate the indirect costs. Be sure that you have calculated indirect rates for the period entered. 

Target

If you select this option, Costpoint uses the target rate from the Pool Rates subtask of the Manage Cost Pools screen to calculate the indirect costs. Be sure that you have entered the indirect rates for the period entered on the Pool Rates subtask. 

Compute COGS Transfer JE

Click to create the journal entry in accordance with the entered parameters. After you start the process, Costpoint displays a message stating that, if a journal entry number does not appear before the processing ends, the application does not create a journal entry. After you click OK, the entry is created, and a message displays the entry number. You can then review and post the journal entry, as usual, on the Post Journal Entries screen.