Wor In Process

[Former Member]

Hi all,

is this true WIP is not calculated when the order was created and settlement happens in the same period? Lets say 100 to be produced and received only 80 Qty,,,, what does that mean the WIP values will not flow to B/S and P&L account when we do settlement in same period?

Paartha

[Former Member]

Hi,

That is not true.

SAP process:

1. If prodcution order is REL status ,you can do WIP calculation and settlement

2.If production order is DLV or TECO status,you can do Variance calculation and Settlement.

In your case production order status is PDLV(Partially DLV).

your total order qty is 100 and you Delivered 80 qty.that means your order is PDLV.

when you run WIP(KKAX),it will reduce your WIP cost and settlement(KO88) will post to FI/CO B/S& P/L.

When you completed with production and delivered 20 qty,that means,your order status is DLV.

now you can calculate WIP.do the following steps

1.overhead (KGI2) (if you have anything- Optional)

2.WIP(you will see Zero(0))

3.Varainces(KKS2)

4.Settlement(KO88) -this will clear your WIP and post variances(if you have any variance)

Thanks,

Rau

Thanks,

Rau

[Former Member]

Rau,

Thats good, But what haoppens to the WIP which I calculated earlier @PDEL , and where can I see those entries in B/S or P&L account?

and I don't see WIP for 20 Qty after PDEL i.e It is not flowing in to them,

Paartha

[Former Member]

Hi,

Thats good, But what haoppens to the WIP which I calculated earlier @PDEL , and where can I see those entries in B/S or P&L account?

WIP will reduce.

Cr: product capitalization account

Dr:Finished/Semi-Finish Inventory

and I don't see WIP for 20 Qty after PDEL i.e It is not flowing in to them,

WIP will reduce and you see remaining WIP in B/S and P/L WIP accounts for that production order.

Thanks,

Rau