WBS cost updation in Balance Sheet

[Former Member]

Hi Experts,

We are in the process of implementing  PS and other core modules( PP,MM & FI/CO) for a manufacturing industry.

When we are settling production orders settlement happens to material because of valuated stock scenario, with this settlement will we be able to get the actual expenses of production orders in  the balance sheet. If yes how can we have a check on this.  we are not doing any settlement of Projects/WBS.

Since WBS element is static cost object it will not update the cost center and it will not reflect Balance Sheet, i.e WBS element cost will not update the Balance sheet.

With the above scenarios will we be able to have the expenses of the project reflected in the Balance Sheet?

Please help me in understanding how cost get updated in Balance Sheet.

Reegards,

Sathakarni

[Former Member]

I just want to go to basics. Balance sheet normally shows Assets and Liabilities.

So, if the output of your project is asset then it will be seen in balance-sheet(in this case, you need to settle project costs to asset).

While in case of production order, typically the materials produced out of production order is also part of inventory stocks, that is reason it is shown as assets.

  In case of Projects(non-investment), every cost goes in Profit & Loss statement( only the statistical cost elements cost goes to balance sheet).

I would like you to further elaborate your question as it is not clear what exactly you want to achieve?

thank you!

Mahendra