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 

[Ken_Melching]

1.  Don't use Movement Type 201, this is a GI to a Cost Center.  Use 221 which is GI to a WBS or 221Q if you are using WBS Project Stock.

2.  When you post costs from a material consumption to a WBS it is on a P&L expense account then you need to use RA to move the costs from the P&L to the Balance Sheet (WIP).  This is standard SAP behavior.

3. What RA method are you using to move the costs to WIP?  It sounds like completion of Contract is applicable.

Have you looked at the difference between Valuated and Non-Valuated Project Stock?  This also comes into play for cost flow.

It is very common practice to use a PS Project with just WBS elements as a cost collector for many industries.