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COGS Dist. rule

Former Member
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Hi Experts,

I am little confused with this COGS Distribution rule. can any one tell me what is purpose of COGS distribution rule?

Thanks & Regards,


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Former Member
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Hi Friends,

Can any one differentiate  Dist. rule   &  COGS Dist. rule?

Thanks & Regards,


Active Contributor
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Assigning Cost Centers to Expense/Revenue and COGS Accounts


COGS accounts are relevant only to A/R documents.

When you create an accounting document that involves expense/revenue and cost of goods sold (COGS) accounts (such as deliveries, A/R invoices, returns, A/R invoices + payments, and A/R credit memos), the transaction amounts are:

Posted to the default expense/revenue or COGS accounts

Allocated to the cost centers that are linked to these accounts through distribution rules

The following procedure illustrates how to link different cost centers to the expense/revenue and COGS accounts for all/specific document rows.

Cost Centres

A cost center is a company unit or division that performs a specific business function, such as manufacturing specific products or providing a specific service. The cost center you define here represents the respective division or department, and is used to consolidate the expenses and revenues resulting from the ongoing activity of the specific organizational unit.

With Regards

Balaji Sampath

Former Member
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thanks balaji