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COGS.AI

Cost of Goods Sold · Advanced Analytics

Unlock the gap between standard and actual cost — at SKU level.

A FIFO-based actual-cost engine built directly on SAP core tables. Move beyond PPV journal entries and start optimising material, BoM and overhead variances across the value chain.

Process model

From source to sale, one cost lens

We instrument every step that moves cost: sourcing, production planning, manufacturing, distribution and the commercial layer. The engine reconciles actual consumption and price against standard, surfacing the gross-margin impact.

01
Sourcing
Purchase reqs, contracts, payments
02
Production Planning
MRP, capacity, scheduling
03
Production
BoM confirm, material consumption
04
Distribution
DRP, FG inventory, fulfilment
05
Sales & Customer
Pricing, margin, service level
Cost opportunity
(Actual − Standard) COGS
Standard COGS is the baseline. We rebuild actual COGS from material inventory, purchase orders, goods receipts & issues, BoM data and a FIFO consumption model — then expose the gross profit & gross margin variance per SKU.
Case study · F'23

For a global consumer goods company

Cost variance, actual vs standard, on a representative SKU set:

A · High volume
1,922,896
Cases
56%
Variance
£6.46m
Opportunity
B · High value, low volume
284,652
Cases
28%
Variance
£523k
Opportunity
Prototype outputs

Four lenses on the same engine

Detective
Cost-opportunity identification
Fiscal COGS-per-case drilldown by SKU.
Descriptive
Process improvement
Supply COGS by plant & component price variation.
Predictive
Digital twin & simulator
COGS & profitability breakdown forecasting.
Cognitive
Autonomous decisions
Real-time response on cost & margin signals.
Data foundation

Built on SAP core tables

The engine is fed by RESB, MBEWH, MSEG, EKPO and BOM_DTL — joined to a date dimension, movement type lookup, and the custom FIFO_FINAL output. Sign in to browse the live model.

DimDateSAP MovementRESBMBEWHMSEGEKPOBOM_DTLFIFO_FINAL