G/L account generated during WIP calculation in HANA Public Cloud Event-Based Costing.

[SAPSupport]

After applying Event-Based Costing, WIP calculation is generally posted to G/L Account DIGITS (Inventory WIP). However, in some orders, WIP is being posted to G/L Account DIGITS (Other Reserves) instead of DIGITS (Inventory WIP), and this issue continues to occur. We are manually adjusting the balance of G/L Account DIGITS through manual journal entries. Our concern is: Under what circumstances does G/L Account DIGITS (Other Reserves) get posted instead of Inventory WIP (G/L: DIGITS)? What actions should be taken to ensure WIP is correctly posted to G/L Account DIGITS (Inventory WIP)?

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[SAPSupport · Accepted solution]

WIP means input is greater than output.

Reserve means input is lower than output.

If you get reserve, it means you have done goods receipts earlier or with amount greater than goods issues and confirmation.

[wondong1 · Accepted solution]

Hello.

So, are you saying that the WIP calculation amount should be considered as the sum of the WIP and Reserve account balances?

Thank you.

[OwenLiu · Accepted solution]

Hello

Sorry for the late response.

There will not be chance to have both WIP and Reserve.

Because either debit>credit, or credit > debit, not both.

Best Regards,
Owen

[wondong1 · Accepted solution]

Hello.

Sorry, what I meant was when referring to the total WIP, should we consider both the WIP and Reserve accounts together?

In other words, if multiple orders generate WIP, and one order posts to the WIP account while another posts to the Reserve account, can we understand the total WIP as the sum of both WIP and Reserve?

Thank you. Best regards