Dears,
In the subcontracting cycle, the accounting entry is:
Dr. Finished product inventory
Cr. COGS
Dr. External activity
Cr. GR/IR
Dr. Consum. Account for raw material
Cr. Raw material inventory
My question is, why using COGS i thought it should be COGM as it's the cost of total operation, what is the business case for it.
Thanks & Regards,
Ahmed Samir