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WIP calculation

Former Member
0 Kudos

At month end My Client has run WIP of pending production orders, due to adjustment some changes has been brought in Production Order after WIP calculation, Now will we calculate WIP again or not? What is the impact of WIP calculation again?

thanks,

renu.

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

Hello Renuka,

You can run the WIP again provided that cut off period has not been changed.

Calculating WIP only stores values in the RA cost element. Calculations do not post anything in FI unless you settle. So calculations can be run & displayed in KKAX & KKAY.

But if the orders are SETTLLED, then you will have to reverse the settlement & do the WIP calculation run , then once again settle those prod orders. This will not give correct picture if the order is partially delivered & forcefully TECOed. Heuristic costing underlies the logic of BLOCKING any WIP run once it is done at a particular moment at period end. Any transaction after that will automatically be constituted as WIP in next period. But if process Cost/mfg. surcharges is high & the prod orders are to be corrected with any material issues, returns or confirmations, you can do the WIP run once again to adjust the inventory figs

If your client has not done settlement and done only the calculations of WIP, then the double entries wouldn’t have been carried out, so he/she can calculate the WIP again. And only after settlement (TCKO88) has been carried out, does it actually get posted to the relevant accounts.

hope it will help you.

Best regards,

shashikanth.

Answers (0)