You assign the cost elements under which the order is debited and credited, or under which the costs are written in the standard cost estimate, to line IDs here.
There are two different methods:
Valuation Using Actual Costs
The line IDs put the costs incurred for the order into specific groups, such as:
The category indicates whether the cost elements under which the different postings are made are debits or credits for WIP calculation.
You can use the debit/credit indicator to separate the costs that are written under the same cost element. This information is needed for WIP calculation to treat the withdrawal of a semifinished product from stock as a debit and the delivery of a semifinished product to stock as a credit.
The fixed/variable indicator allows you to treat the fixed costs for internal activities and overhead differently than the variable costs. The costs for the semifinished materials with standard price control are are also split according to fixed and variable costs.
Valuation Using Target Costs
The line IDs put the costs incurred for the material to be produced into specific groups such as:
These groups should be based on the structure for the cost of goods manufactured in the cost component layout (see Maintain cost component layout and Define cost components).
This category indicates whether the cost elements under which the costs are written in the standard cost estimate are relevant to WIP calculation.
Capitalizing Work in Process
In the assignment, you define whether the process that must be shown as a result of these costs is to be capitalized and in what amount. For example, you can specify that:
You also define the validity dates for the assignment.
You assign the cost elements combined in line IDs to one of the following groups:
You then define:
This assignment is taken into account in the posting rules. There are three categories in the posting rules that are created from this assignment:
|WIPR||Work in process with requirement to|
|WIPO||Work in process with option to|
|WIPP||Work in process with prohibition to|
You will normally define a posting rule that assigns the work in process with requirement to capitalize costs to the G/L accounts for unfinished products (balance sheet) and stock changes (P+L).
Work in process is capitalized according to this assignment.
In the Product Cost by Order component, if you are using multiple valuation views in the calculation of work in process at actual costs, the system automatically assigns the line IDs defined in the results analysis version of the operational valuation view to the results analysis versions of the multiple valuation views referencing the operational results analysis version.
You must already have defined the following:
The standard system contains predefined line IDs. You have to assign the cost elements in your cost element list to these standard line IDs before you can calculate work in process.