International Journal of Computer
Trends and Technology

Research Article | Open Access | Download PDF
Volume 73 | Issue 11 | Year 2025 | Article Id. IJCTT-V73I11P104 | DOI : https://doi.org/10.14445/22312803/IJCTT-V73I11P104

Usage of SAP Actual Costing - COGM in Global Manufacturing Industries to enable USGAAP / IFRS and Local Statutory Inventory Valuation in SAP S4 HANA On-Premise

Kailash Singh

Received Revised Accepted Published
18 Sep 2025 26 Oct 2025 13 Nov 2025 29 Nov 2025

Citation :

Kailash Singh, "Usage of SAP Actual Costing - COGM in Global Manufacturing Industries to enable USGAAP / IFRS and Local Statutory Inventory Valuation in SAP S4 HANA On-Premise," International Journal of Computer Trends and Technology (IJCTT), vol. 73, no. 11, pp. 26-29, 2025. Crossref, https://doi.org/10.14445/22312803/IJCTT-V73I11P104

Abstract

Manufacturing companies with a Global geographic presence require external and Internal reporting for actual inventory valuation to meet US GAAP (Leading Ledger) and Local GAAP (Non-Leading Ledger). In some countries, such as Brazil, Spain, and Turkey, it is mandatory to provide an inventory valuation in accordance with the local accounting standard to meet statutory requirements if the company's headquarters are in another country. SAP S4 HANA Product Costing and Actual Costing - COGM (COST OF GOODS MANUFACTURED) provides a solution to record all production goods movements, purchase price variances, and direct – indirect expense cost allocation for actual inventory valuation for US GAAP and Local GAAP by executing the actual closing – alternative valuation run separately for each valuation view (Legal Valuation, Group Costing at Group Valuation, and Group Costing at Profit Center Valuation)
- Expense Postings with a significant difference in US GAAP and LOCAL GAAP due to accounting standards of IFRS and Local Statutory.
- Common General Ledger Accounts are mapped for both Ledgers and Accounting Principles.
- The Actual Inventory Valuation approach is different as per accounting standards to meet the local statutory requirements.

Keywords

SAP, SAP S4, SAP S/4 HANA, Parallel COGM, ML, Actual Costing, CO-PC, Multi-Inventory Valuation.

References

[1] Production Planning and Controlling. [Online]. Available:  https://help.sap.com/docs/SAP_BW4HANA_CONTENT/06e872f914a44d77b6c692b0273ca400/75d9054b553b44259c01d33801caced4 .html?q=SAP+Product+Costing+on+HANA
[2] Calculation of COGM and COGS. [Online]. Available: https://help.sap.com/docs/SAP_ERP/92419cca24534eaebb91b731261d911a/8c94d7531a4d414de10000000a174cb4.html?q=SAP+Prod uct+Costing+on+HANA+-+COGM
[3] [Online]. Available: https://community.sap.com/t5/enterprise-resource-planning-q-a/the-link-of-comprehensive-presentation-in-the attachment-of-note-1852519-or/qaq-p/13754571
[4] Alternative Valuation Run AVR. [Online]. Available: https://help.sap.com/docs/SUPPORT_CONTENT/ficontrolling/3361879083.html
[5] [Online]. Available: https://pr.alm.me.sap.com/launchpad#FALApp-display