The system calculates
work in process to determine what costs have been
incurred for materials that have not yet been delivered to stock.
The work in process is calculated on the basis of the quantities
confirmed at the reporting points. The work in process calculated
is passed to Financial Accounting by period and included in the
balance sheet and the profit and loss statement.
The work in process calculated is updated to the
production cost collector under the results analysis
cost elements and can be analyzed in the information system and
transferred to Financial Accounting and Profit Center Accounting.
To establish the control parameters for WIP calculation, you define
The results analysis key contains the
control parameters for WIP calculation. It forms the links between
the application and Customizing.
A results analysis version
accounting indicator means that this version is
relevant for the balance sheet and the profit and loss
If you are operating is more than one
country, you can define multiple
results analysis versions to meet the legal
requirements of the different countries.
The work in process is updated on the
production cost collectors by version and can be analyzed in the
information system and settled to the
G/L accounts of the balance sheet and profit and loss
A link between the results analysis key and the system status
The system generates a valuation
method for this entry that controls the valuation of the reporting
point quantities. The system sets the status of the production cost
collector to "released" automatically when you create it.
A valuation variant for scrap and WIP
You use this valuation variant to
control which costs are used to valuate work in process and scrap.
You can enter a strategy sequence that allows you to valuate the
actual costs at:
Planned costs / version-specific cost estimate
The work in process and scrap are
valuated on the basis of the preliminary cost estimate for a
production order or process order, or on the basis of the
version-specific cost estimate.
The valuation at planned costs can be
regarded as the most realistic valuation.
Costs calculated on the basis of an alternative material cost
You enter the costing variant and the
costing version of the corresponding cost estimate. For example,
you could valuate on the basis of a
modified standard cost estimate that you recalculate
in each period.