9 June

Cost of sales method (SAP Business One)

The cost of sales method is a method for presenting the Profit and Loss AccountThis method compares sales revenue with only the directly attributable expenses - such as the cost of goods sold. SAP Business One supports this method with automatic postings and report templates.


E-invoicing in Germany: How to implement the obligation with SAP Business One

Detailed explanation/description:

According to § Section 275 (2) HGB companies can choose to present their income statement in accordance with the Cost of sales method or the Total cost method The cost of sales method The cost of sales method shows the earnings situation by comparing sales revenue and the associated cost of sales.

Content structure of the procedure:

  • Sales revenue (net, less e.g. rebates, discounts, VAT)
  • - Cost of sales (production costs of the products or services sold)
  • = Gross profit
  • ± Operating expenses/income (e.g. salaries, distribution costs)
  • = Operating result
  • ± non-operating expenses/income (e.g. interest, taxes)
  • = Net profit/loss for the year

Difference to the total cost method:

  • The total cost method shows all Cost types including changes in inventories and own work capitalised.
  • The cost of sales method uses a functional breakdown by area (production, administration, sales).

Cost of sales method in SAP Business One:

  • The income statement can be analysed with the help of Report templates be structured according to the cost of sales method.
  • Continuous inventory management is a prerequisite for the automatic booking of the Cost of goods sold (COGS).
  • COGS are posted automatically on delivery or invoicing (debit: cost price account / credit: stock account).
  • Valuation methods: Moving average, FIFOstandard costs, series/batch valuation - defined according to article master data.
  • The profit and loss report shows the operating profit (operating income) on the basis of the COGS recognised.

Expansion through cost accounting:

Additional allocation of costs to cost centres, projects or dimensions enables differentiated evaluations. These supplement the income statement with functional contribution margin analyses and increase the informative value for individual areas of the company.

Key features/important aspects:

  • Allows detailed economic analysis of product or business areas
  • High accuracy due to direct allocation of cost of sales to revenue
  • More complex than the total cost method, requires well-founded cost accounting

Target group:

Accounting companies, accountants, controllers, tax consultants, management

E-Rechnungsckeck

E-Rechnungs-Check der Versino Financial Suite

Eine E-Rechnung ist schnell erzeugt. SAP Business One bringt die XRechnung im Standard mit, und wer mit cks.eINVOICE oder dem ...
Versino Accounting Service

Versino accounting service

Bookkeeping should run quietly. Vouchers come in, are posted, the VAT return goes out, and the tax advisor also gets a ...
Cash flow forecasting SAP B1

Cash flow planning in SAP Business One: What the Versino Financial Suite does differently

Cash flow planning is considered a done deal in many medium-sized companies. After all, there are bank statements, there are open items, ...
Webinar Versino Financial Suite

Two free webinars in July: Experience the Versino Financial Suite live

In 90-minute sessions, we'll show you practical ways to harmonise, streamline and automate your accounting in SAP Business One….
E-Invoice-International

E-Invoicing 2026: What is changing now for SMEs and SAP B1 users

The e-invoice has moved beyond the theoretical IT project phase. Since January 2025, the obligation to receive e-invoices applies to all domestic companies — ...
SAP Business One Netting and Accounts Payable

Netting in SAP Business One: What makes the Versino Financial Suite different

When a business partner is both a customer and a supplier, that sounds like a comfortable situation. You know each other, you trust...
Wird geladen …