SAP Note 1341815 - Work in process (WIP) at targets

Component : Product Cost by Period -

Solution : https://service.sap.com/sap/support/notes/1341815 (SAP Service marketplace login required)

Summary :
This SAP Note explains the Work in Process (WIP) calculation, particularly using the WIP at targets method within Cost Object Accounting. WIP valuation for unfinished products occurs via target costs derived from backflushed yields in Product Cost by Period, primarily recommended for repetitive manufacturing setup. Product Cost by Order, utilizing actual costs, is advised for other production orders. WIP values are transferred to Financial Accounting through order settlement. Customizing involves setting up the results analysis version and valuation methods for WIP and scrap to ensure accurate financial documentation and balance sheet representation. This process is essential for reflecting the true cost and valuing ongoing manufacturing processes on financial statements.

Key words :
operation          planned costs 0010                100020                20 lotsize 1 product cost collector operation 0010, prerequisites design solution general information, reporting point backflushing automatically includes, product cost collector/manufacturing order, = operation increment                       wip reference qty, product cost collector operation 0020, special cost element category, results analysis cost element, terms wip determination/work, plan costs/preliminary costing

Related Notes :

647496WIP calculation for FAUF with periodic settlement
386816WIP and variance calculation: Errors KV158, KV181