C_TS4FI_2023 Exam Dumps | In the standard sales process, when is the COGS posting generated in Financial Accounting?

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SAP.C_TS4FI_2023.v2025-09-12.q36
Question 27

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Question 27/36

In the standard sales process, when is the COGS posting generated in Financial Accounting?

A. Issue customer invoice

B. Do PGI (Post Goods Issue)

C. Create billing document

D. Create delivery document

Correct Answer: B

In the standard sales process in SAP S/4HANA, the Cost of Goods Sold (COGS) posting is generated when the Post Goods Issue (PGI) is completed. PGI represents the point at which the goods physically leave the warehouse and ownership is transferred to the customer. This is the critical step where the inventory quantities and values are adjusted, and the COGS is recognized in Financial Accounting. Here are the steps in more detail:
* Sales Order Creation: The sales process begins with the creation of a sales order.
* Delivery Creation: A delivery document is created based on the sales order.
* Post Goods Issue (PGI): When the goods are shipped, the PGI is executed. This step triggers the reduction of inventory and the posting of COGS in Financial Accounting.
* Billing: After the goods are shipped, the billing document is created, and the revenue is recognized.
References
* Standard SAP documentation on the sales process and COGS posting mechanisms in SAP S/4HANA.

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