Sales OH and Corporate OH computation in order WIP Valuation

[Former Member]

Hi All,

While reviewing production order bookings it is observed that at the time of

running monthly "overhead run", system is calculating corporate overhead

and sales overhead and debiting production order. Since at standard cost

run, corporate OH and Sales OH is not being considered in inventory

valuation, hence production order is credited with cost of goods

manufactured level.

Now if the order is in open status, WIP valuation is happening like "Debit

in production order (incl corporate OH and Sales OH) minus Credit in the

production order (w/o corporate & sales OH).

Can you please suggest some way to follow for correct WIP valuation.

Regards,

Kumar

[ajaycwa1981]

Hi Pavan

Assign the cost elements relating to these 2 overheads to a separate LINE ID and in OKGA assign this LINE ID to category N

br, Ajay M

[Former Member]

Hi Ajay,

Can you please let me know how can I assign these cost elements to line Id, when i create line id there is no option of assigning the cost elements. Can you please explain me how to do it.

Thanks for your support.

Regards,

Pavan Kajijpeta

[ajaycwa1981]

Hi

You do it in OKGB, after creation of LINE IDs

br, Ajay M

[Former Member]

Hi Ajay,

I have done the configuration, but when I run the WIP it is still considering Corporate and Sales OH. Please help me out in this regard.

Regards,

Pavan

[ajaycwa1981]

Hi

OKGA: did you assign catg N to this LINE ID

br, Ajay M

[Former Member]

Hi Ajay,

I have assigned category N only in OKGA but when I run WIP still OH is considering.

Regards,

Pavan

[ajaycwa1981]

Strange!! Should not happen that way

Post the settlement and catch hold of SAP if it posts WIP with full amount

br, Ajay M