Managing Agricultural WIP Using WBS and Project Stock Consumption in SAP

[younesamraoui]

In Arable production project,  we want to use WBS element to collect both direct expenses (labor, services, etc.) and expenses from the consumption of materials received into project stock (e.g., seeds, fertilizers). 

And we want the cost of consumption of those materials (e.g., via movement type 201 in MIGO) to be posted to the WBS and included in Results Analysis (RA) for WIP capitalization along side with the direct expenses.

The goal is to exclude from the P&L the costs occured from the consumption of those materials and have them instead on WIP account.

My questions are: 

1. How to include the costs occured from the consumption of materials using MIGO 201 movement type into the actual costs of that WBS? 

2. Is this the correct approach for agricultural WIP tracking in SAP in the absence of a PP module?

Any insights or recommendations from your experience would be greatly appreciated!

PLM Project System (PS); FIN Cost Object Controlling ; SAP Revenue Accounting and Reporting 

[Lakshmipathi]

If your requirement is to posts the material consumption via movement type 201 to the WBS element and is included in Results Analysis (RA), follow these steps:

With Special Stock Q, when you procure materials like seeds or fertilizers, assign the WBS element in the purchase requisition or PO. This ensures the goods receipt goes into project stock (stock type Q).

During MIGO, use movement type 201 or 221 if applicable, and enter the WBS element in the account assignment. This posts the material consumption directly to the WBS as an actual cost.

Then comes to correct Valuation Class for these materials. Ensure, material master have a valuation class that maps to the correct cost element in OBYC for the transaction keys like GBB-VBR. This ensures the posting hits the right cost element for RA.

Finally, configure RA to include actual costs from material consumption in KKA2 & KKA3. Use RA version that includes cost elements from both direct expenses and material consumption. By doing so, the outcome would be the cost of consumed materials will be posted to the WBS and capitalized as WIP, not expensed to P&L.

[pawan__kumar]

Using the Project System with WBS elements to manage agricultural cycles (planting to harvest) is a SAP best practice. It provides superior cost control, budgeting, and capitalisation capabilities compared to trying to force-fit a repetitive manufacturing (PP) solution or using simpler cost objects. It is designed precisely for this type of capital project