WIP Calculation in SAP
When we are Calculating WIP in SAP i found two things
it is taking all the materail cost from the order for which the raw material has been issued but the stock from the orders were not delivered. I think that is correct since the Stock is still lying in the shop floor and SAP is calculating the WIP from that stock.
But i have a problem in Understanding that WIP calculated for a Specifical Month is not getting reversed on the first day of the next month, but it is getting reversed on the settlement of the Order after complete delivery only.
One Production Order ZYX is Created In March 20th for getting the output Material 123
for that we issued raw material A, B,C with total value of 200 EUR on 31st of may we calculated the WIP and it showed the value of 200 EUR in WIP but on 1st of April it is not getting reversed.
next month i.e. April we issued raw material to Order say D,E,F with Total Value of 800 EUR this time WIP is calculated on 30th April for 800 EUR and showing in the GL without any reversal in May 1st.
On 15th of may the Production Order ZYX Had the GR of Material 123 and now at the settlement of Order on the 31st May it is showing the settlement Entry and the addition entry of WIP Reversal for 1000 EUR.
Now i want to know why is SAP not Reversing the entry for every month and why is it getting reversed at the Order Closing Time.
Is it the SAP Standard Process or Is it some thing that can be changed by Customization.