Comparing Sales Revenue with Manufacturing Costs Using Cost of Sales Accounting in the General Ledger

Objectives

After completing this lesson, you will be able to:

  • Describe how cost of sales accounting can be performed in general ledger accounting

Cost of Sales Accounting

Profit and Loss Statement

Period Accounting and Cost of Sales Accounting

Definition and Use of Functional Area

Universal journal as single source of truth - Functional Area

Example of Functional Area

Bike Company

In our scenario for the Bike Company an amount was posted to G/L Account 61500000 (Sales Commission) and functional area YB30 (Sales and Distribution).

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