WIP Calculation for project - FI posting

[Former Member]

Hello everybody,

I need some help please.

Here i my case, WIP is configured based on actual costs....

I post some actual cost on a network activity with status RELEASED (overhead costs)

I run KKAJ for WIP calculation. After this, i run CJ8G and here what happens: The network activity is settled (credited) and the costs go to relevant WBS element (debited), a P&L WIP account (511010) is credited and a Balance wip account is debited (114200).

When the project is invoiced, i set the status on the WBS element to TECHO (Technically completed).

With TECHO, i run again KKAJ and the the WIP is moved between the two cost elements (the first for creation and the second for usage).

Then i run CJ8G: The Balance WIP account (114200) is credited and a P&L account named "Cost of goods sold" (341100) is debited.

My question is: and the P&L WIP account (511010) should not be debited too? The balance of this account is accumulating! Is that right?

If you didn't understand my question, i try other way....

Waiting for help...

thanks!

[former_member203098 · Accepted solution]

please exclude settlement(Cj8g) from network activity to WBSE and follow the remaining steps as it is.

regards,

[Former Member · Accepted solution]

Hello NAG AC

Sorry I'm late right? I took a long time to reply your help. But.....i was trying to understand more about controlling and now i know why the accounting described above by me is happening.I did further research about result analysis and everything is ok! The accounting is right and will continue!

I don't know why you suggest to exclude settlement from network...once the consultant recommended...but the reason for settlement is unclear for me! Only thing i know is that by settlement my network is credited and all the actual costs are debited to WBSE, and the config (settlement rule) here allow postings to FI only by WBSE and not from network.

Thanks for your help.

[Former Member]

Hi ,

We are facing a similar issue when we calcualte WIP for Project.

KKA2 - Result Analysis calculates WIP = actual cost till the time there is no revenue.

On Settling the RA data via CJ88, the P&L WIP account (511010) is credited and a Balance wip account is debited (114200).

Further when Revenue is posted on the Project, on executing Result Analysis, The WIP is reversed & the COS is calculated based on Actual costs.

On Settling the RA data, two FI entries are posted

1) P&L WIP account (511010) is debited and a Balance Sheet wip account is credited (114200) : This is because the WIP is reversed.

2)  The Balance Sheet WIP account (114200) is credited and a P&L account named "Cost of goods sold" (341100) is debited as per COS (Cost of sales) calculated in RA.

My concern is that the Balance Sheet WIP account (114200) is getting debitted once during WIP posting credited twice - 1) during WIP reversal & 2) as a offset credit during COS posting ( P&L account named "Cost of goods sold" (341100) is debited as per COS (Cost of sales)COGS].

Is there a way to avoid Balance sheet account being credited twice?

PS : I have used the same a/c numbers just for the simplicity to explain the issue.

Many Thanks,

Sejo