on 11-17-2009 8:25 AM
Hi Guys,
Do we carry out the Results Analysis to know the cost of the WIP at a particular point of time?
What information does this Results Analysis yield and how do we use this information. Do we calculate the cost of WIP?
And where do we settle these costs?
Pls let me know about this concept of WIP and RA ??
Thanks
Kris..
You can use results analysis to:
Calculate the value of the costs that can be capitalized for controllingg object like wbs
You can capitalize costs with an option to capitalize by means of settlement to Financial Accounting (FI).
Determine whether reserves should be created
Results analysis creates reserves that you can transfer to FI, Profit Center Accounting (EC-PCA), and (depending on the type of reserve) Profitability Analysis (CO-PA) when you settle.
Reconcile the data posted in FI and in CO-PA to each other
Because the revenues affecting net income and the costs affecting net income are usually different from the actual revenues and actual costs posted in FI, the result shown in CO-PA is different from the profit/loss in FI. The difference between the value in CO-PA and the value in FI can be offset by means of postings of reserves and inventories. If you are not using CO-PA, correction postings can still be made in FI. The correction postings are made through the settlement of results analysis data.
If you are using a nonvaluated stock, you normally perform results analysis.
Depending on the results analysis method, the system can calculate the following results analysis data:
Inventory values
Reserves for unrealized costs
Reserves for imminent loss
Reserves for complaints and commissions
Cost of sales
Calculated revenue
Hope this helps you
shashank
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