capitalizesd cost

[Former Member]

hi

in the CK11N,we make plan cost esimate and released, in the CO01 plan and actual cost calculate , these difference take as a variance and difference between delivered and undelivered take as WIP. this WIP amount through posting rule send to FI

IS NOT IT

SO, why we are assigning cost element/ group to LINE ID's , these line id's take ' required to capitalized ' what is mean of CAPITALIZED , for this line ids RA cost element assigning .

what is the result of doing this

which cost has to take as capitalized,which one has to take as prohibition to capitalize

any link LINE IDs to WIP

THNK U

SOWMYA

[Former Member]

Hi,

WIP or RA:

The objective for calculating Work in Process (WIP) is to determine the value of manufacturing activity in process at the end of a fiscal period, during a fiscal period and to properly reflect this value on the financial statements. WIP calculation is a facet of Results Analysis (RA). RA is a specialized tool within the controlling module that computes and analyzes the value of WIP. The terms WIP calculation and RA are generally interchangeable.

The difference between SAP and other systems is in the treatment of material consumption for manufacturing. Component issues to production orders, run schedules, WBSs, etc is immediately treated as an expense to the P&L statement. The issue is not treated as a reclassification from raw or semi-finished inventory to WIP inventory. SAP considers WIP to be a snapshot of values that can be computed on demand and passed to the general ledger as required to re-class the values to the balance sheet. This process demands a specific, methodical approach to be used for period-end and mid-period processing. Rules used to calculate the value of WIP and settle WIP to the G/L are defined in multiple RA tables depending upon the requirements of the company. RA is designed to support a variety of calculation techniques and there may and are alternate settings depending on the demands of the company. To support the configuration, scenarios and unit testing need to be thorough. RA needs to be configured towards the middle of the of the implementation with subsequent testing. This will allow for configuration of the data needed to support WIP and RA (chart of accounts, production orders, projects, cost centers, cost elements, etc.)

Configuration Transactions:

OKG1 u2014 Create Results Analysis Key

OKG2 u2014 Results Analysis Version

OKG9 u2014 Results Analysis Version

OKGC u2013 OKGD u2014 Valuation Methods

IMG SPRO u2014 Define Line IDs

OKGB u2014 Define Assignment Mapping by incoming charges by cost element to line IDs

OKG5 u2014 Define Assignment Mapping by incoming charges by cost element to line IDs

OKG4 u2014 Define Update

OKG6 u2014 Define Number Ranges

hope this helps you.

Thanks,

Rau