Defining Cost of Goods Sold Information for a Product Contract

Use this procedure to define the cost of goods sold information for a product contract. This information is used for the sale of third party products.

To define cost of goods sold information

  1. Access Product Contract (BR51.1).
  2. Select the product contract for which you are defining cost of goods sold information and select the Inquire form action.
  3. Click the Cost of Goods button to access Product Cost of Goods Sold (BR51.2).
  4. Select the product detail line for which you want to define information.
  5. Use the following guidelines to enter field values:
    Total Cost

    Type the total cost of the product or the system will calculate it (base cost plus incremental amount based on number of users = total cost). The cost amount entered in this field is expensed in proportion to the amount of revenue being recognized when the revenue program is run.

  6. On the Amounts tab, use the following guidelines to enter field values:
    User Fields

    Use these fields to store additional information that differentiates a product, such as server type, database type, and operating system. The information displayed defaults from Product Contract (BR51.1), but can be overridden here.

    Site Location

    Select the site where the product is used. The information displayed defaults from Product Contract (BR51.1), but can be overridden here.

  7. On the Expense Accts tab, use the following guidelines to enter field values:
    Account Category

    Type or select the expense account category used to make journal entries for COGS. The account category defaults from the Product List Accounts (BR50.2) default tab, but can be overridden here.

    Account

    Type or select the expense account used to make journal entries for COGS. The account defaults from the Product List Accounts (BR50.2) default tab, but can be overridden here. If the account field is completed, leave the GL Code field blank.

    GL Code

    Type or select the GL code used to make journal entries for COGS. The GL code defaults from the Product List Accounts (BR50.2) default tab, but can be overridden here. If the GL Code field is completed, leave the Account field blank.

  8. On the Liability Accts tab, use the following guidelines to enter field values:
    Account Category

    Type or select the liability account category used to make journal entries for COGS. The account category defaults from the Product List Accounts (BR50.2) default tab, but can be overridden here.

    Account

    Type or select the liability account used to make journal entries for COGS. The account defaults from the Product List Accounts (BR50.2) default tab, but can be overridden here. If the account field is completed, leave the GL Code field blank.

    GL Code

    Type or select the GL code used to make journal entries for COGS. The GL code defaults from the Product List Accounts (BR50.2) default tab, but can be overridden here. If the GL Code field is completed, leave the Account field blank.

Followup Tasks

  • Click the Attributes button to access Activity Attributes (AC13.1) and define attributes for the contract activity for this product contract.

  • Click the Comments button to access Product Contract Comments (BR31.1) for this contract. Use this form to add comments at the header level.