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Dynamics 365 Community / Forums / Supply chain | Supply Chain Management, Commerce / COGS - D365
Supply chain | Supply Chain Management, Commerce
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COGS - D365

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A customer is unable to breakup COGS into two separate accounts. He has direct cost and packing cost, so he wants to record direct cost in separate account and packing cost in separate account.
  • Suggested answer
    Siv Sagar Profile Picture
    Siv Sagar 3,751 Super User 2025 Season 1 on at
    COGS - D365
    Hi,
    These are the basic steps to address the customer's requirement of recording direct cost and packing cost in separate accounts for COGS (Cost of Goods Sold) in Dynamics 365 (D365), you can follow these steps:
     
    1. Set up separate accounts: First, ensure that you have two separate ledger accounts available for recording direct cost and packing cost. These accounts should be defined in the chart of accounts in D365.
     
    1. Create separate cost categories: In D365, cost categories are used to categorize different types of costs. Create two cost categories: one for direct cost and another for packing cost. You can define these categories in the 'Cost categories' form under the 'Product information management' module.
     
    1. Assign cost categories to cost elements: Cost elements represent the different components of cost within D365. Navigate to the 'Cost elements' form and assign the appropriate cost categories to the relevant cost elements. For example, you can assign the direct cost category to the cost element related to direct materials, and assign the packing cost category to the cost element related to packaging materials.
     
    1. Configure inventory posting profiles: Inventory posting profiles control the accounting entries generated when inventory transactions occur. Ensure that you have separate inventory posting profiles for direct cost and packing cost. Associate the relevant cost elements and ledger accounts to these profiles. You can access the 'Inventory posting profiles' form in the 'Inventory and warehouse management' module.
     
    1. Assign inventory posting profiles to items: For each item in your inventory, assign the appropriate inventory posting profile that corresponds to its direct cost and packing cost. You can do this by updating the item details in the 'Released product details' form.
     
    1. Test the setup: To validate the configuration, create a sample sales order or purchase order that includes items with direct cost and packing cost. Process the order and review the resulting accounting entries to ensure that the costs are correctly posted to the separate accounts based on the configured inventory posting profiles.

    By following these steps, you can successfully record direct cost and packing cost in separate accounts for COGS in D365, allowing your customer to track and analyze these costs separately.

    Best regards,
    Siv Sagar
    This post is my own opinion and does not necessarily reflect the opinion or view of my company.
    Please mark as verified if the answer is helpful. Welcome to join hot discussions in Dynamics 365 Forums.
  • André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 293,245 Super User 2025 Season 1 on at
    COGS - D365
    Hi,
     
    Can you provide more information? What exact process are you following and where exactly does your customer expect different accounts? How are they currently specifying the packing cost? Are they using miscellaneous charges?

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