Wip Calculation

Work in Process
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Work in Process
Use
The WIP calculation function valuates the unfinished products (work in process).
In the Product Cost by Period component, work in process is valuated at target costs. The operation quantities
confirmed for the manufacturing orders or production versions (only in repetitive manufacturing) that are not
scrap are valuated at target cost in accordance with the valuation variant for work in process and scrap.
You can calculate work in process at target costs for the following objects:
Product cost collectors

Production orders with quantity structure
Process orders
The WIP calculation function valuates the unfinished products (work in process). In
The Product Cost by Order component, the work in process is valuated at actual cost.
Work in process is the difference between the debit and credit of an order that has not
Been fully delivered. You can calculate WIP at actual costs for the Process orders on
The individual or collective basis as per requirement.
Work in process: this is done during Period end process, when you want to see P & L or balance sheet.
Say suppose you have some order on 31 March, you want to see the cost of pending orders, where you
have not done GR,
Then you do WIP to see the total pending order cost.
This is calculated at actual costs.
WIP is only created for orders that have been released (REL).
If the order has been technically completed (TECO) or delivered (DEL), then WIP is not created, but is
broken down if it exists. However, WIP is only posted to FI when the order is settled. WIP cannot be
calculated at target costs.
It is only possible to calculate WIP in Product Cost by Period.
The WIP calculation function valuates the unfinished products (work in process). In the Product Cost by
Period component, work in process is valuated at target costs. The operation quantities confirmed for
the manufacturing orders or production versions (only in repetitive manufacturing) that are not scrap
are valuated at target cost in accordance with the valuation variant for work in process and scrap.
-----------------------------------------------------------------------------------------------------------------------------------------Created by: - Devidas Karad

SAP PPPI Certified Consultant
E-mail:- devidas.karad@gmail.com
Work in Process
------------------------------------------------------------------------------------------------------Scenario :- Standard cost run is carried out and released, standard price is updated
Production order for 2 quantity is created

Work in Process
------------------------------------------------------------------------------------------------------In the cost analysis you can see planned costs are calculated

Work in Process
------------------------------------------------------------------------------------------------------While doing confirmation when you press actual data, actual values for activities and material get
displayed.

Work in Process
------------------------------------------------------------------------------------------------------Now we will change the yield, activities and consumption to half of original values

Work in Process
------------------------------------------------------------------------------------------------------Now in order cost analysis you can see the values updated
WIP test run is carried out for the order in KKAX transaction

Work in Process
------------------------------------------------------------------------------------------------------You will see WIP is calculated as
WIP = Material consumption + Activities GR cost
= 2 + 59.75 0
= 61.75
Now do goods receipt for the order of 1 quantity

Work in Process
------------------------------------------------------------------------------------------------------Now in cost analysis of order you can see values are updated
Finally calculate WIP in KKAX

WIP = Material consumption + Activities GR value
= 2 + 59.75 74.61
= -12.86
Now you can settle order then values get posted to FI (Status of order must be DLV/TECO for
settlement)

Wip Calculation

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Wip Calculation

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Work in Process

Product cost collectors

-----------------------------------------------------------------------------------------------------------------------------------------Created by: - Devidas Karad

Production order for 2 quantity is created

-----------------------------------------------------------------------------------------------------------------------------------------Created by: - Devidas Karad

-----------------------------------------------------------------------------------------------------------------------------------------Created by: - Devidas Karad

-----------------------------------------------------------------------------------------------------------------------------------------Created by: - Devidas Karad

-----------------------------------------------------------------------------------------------------------------------------------------Created by: - Devidas Karad

-----------------------------------------------------------------------------------------------------------------------------------------Created by: - Devidas Karad

Now do goods receipt for the order of 1 quantity

-----------------------------------------------------------------------------------------------------------------------------------------Created by: - Devidas Karad

Finally calculate WIP in KKAX

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