WIP values update in ML

[Former Member]

Hi All,

I have a production order for which GI is done completely
but GR is done is partially. That means production order is not complete, its in
WIP stage. Hence no TECO/DEL status.

Hence at month end we run the WIP and then settlement of
Production order. Now the accounting entries are OK. No ML document gets
generated.

But my question is whether this WIP values (Let say GI = 100
and GR = 20, hence WIP= 80) will not get updated in Material Ledger?.  In my case it is not showing.

I am in doubt whether it should show or not. If yes, it
should show, then what configuration I might be missing or what is the issue
here that it is not showing.

Then in this case how ML takes care of WIP values for Actual cost calculation of FG.

Kindly help.

Regards

Kami

[NaveenP1]

There is no point in transferring the WIP values to material ledger unless you have WIP revaluation activated.

Check this out

http://help.sap.com/saphelp_erp60/helpdata/en/0d/92ca83c6764e4f9c0193d2454b1b87/frameset.htm

[Former Member]

Hi Naveen,

Thanks for your reply.

Like Stock revaluation in ML Closing process in an Optional Step, WIP revaluation should be an Optional step.

Why I am saying that WIP values should go to ML and PARTICIPATE in actual cost calculation because some GR has been done and for that GR quantity, corresponding WIP values has to be apportioned to find the actual cost as it is also mentioned in the link you sent (For Multilevel Price Determination). The highlighted point is underlined. And the rest should not be allocated for Actual Price determination.

"Multilevel price determination takes place using the adjusted actual quantities in the costing run. This means only the differences that should be assigned to the delivered semi- or finished goods

in the actual period are actually assigned to these products. The differences that should be assigned to the WIP are not included in the calculation."

The WIP revaluation process then allocates the differences to WIP.  Please let me know if my understanding is clear. As I am not finding the right scenario in my DEV system to check it, hence I required the help.

Regards

Kami

[ArturoSenosain]

Hi Kami.

If you dont activate wip revaluation, the WIP is not revaluated at actual cost, this 80 is just a Balance account.

I recomend you activate this functionality check this OSS for more details

Note 608162 - WIP in ML Availability in Enterprise Ext.Set 2.00

With this functionality, you can see the details of the WIP in CKM3N.

Arturo.

[Former Member]

Hi Arturo,

Thanks for your reply. Actually I am still not clear about the following point:

1. Whether this value of 80 will participate in Actual cost calculation/multilevel price determination for the FG (PUP Calculation) or not??

2. WIP revaluation steps comes later on once we have this PUP calculated, so that it can be used for WIP in stock to revaluate. (I hope this is optional step).

My main query is related to Point no:1

Thanks and regards

Kami

[ArturoSenosain]

Hi Kami.

About point 1, yes 80 is part of the actual cost i mean 80$ is reduced from PP order, and is show in the balance account. The Stock created with the Goods Receipt of the PP order is valuated at "total cost of PP Order" - WIP + all the price difference.

The problem is, 80$ is not the "actual wip" and without wip revaluation the price difference dont hit the WIP, all is post to the stock (thats why i say "all the price difference", not only the proportional part)

From my point of view, WIP without WIP Revaluation is incorrect, and some times damage the unit cost of the product.

BTW, In some countries, valuate WIP at actual cost is a legal requirement.

Arturo.

[Former Member]

Hi Arturo,

Thanks for your reply. As suggested I did the WIP revaluation in CKMLCP cockpit. But I don't see anything related to WIP values. I mean I don't see any affect to PUP calculation due to WIP. Its showing the same way as normal CKM3N without WIP values.

I also checked the transaction 'COMLWIPDISP', there is nothing like Actual WIP values.

I have performed the following steps.

Created Production orders for SFG and FG.

GI and GR partial (Not complete).

WIP calculation Production orders

Settlement of Production orders

CKMLCP Run

- Single level and Multilevel

- Revaluation of Consumption

- WIP Revaluation

I have not done Posting closing step as I don't want to close the period unless I get to know how this WIP values affect PUP calculation.

Please let me know, if I am missing any steps or how to understand the Impact of WIP values in PUP calculation.

Kindly help.

regards

Kami

[ArturoSenosain]

Hi Kami. Letme resume the process. its a bit complex to explain, wish help you.

1 This is a PP Order in WIP

the co wip run show part of the wip is raw material and part is activity costs

2. When you settle the PP Order, do a FI post. You dont see this post in CKM3N of the fert

in the example, 14 is stock account, 73 is production variation.

3.In the ML Close, the price difference from the raw material go multilevel to the stock of the Fert, and part to the WIP. You see this stuff in ckm3n of the raw

check the following:

- price diff of 50000 is split between production, Wip and end stock. Check the production line, 2 units that was consumed to productions is converted on WIP.

- in WIP production, you see the wip revaluation line that valuate WIP at actual cost.

4. In the FI post of the ML  close, you see operation

WPM that revaluate my 14 wip account at actual cost.

the other part of the price difference comes from the activies

In the cost center, you can see with gbb-auf the post that revaluate stock (100) and WIP (100), and jump to the FI post. 100 + 100 = 200

In the FERT, price difference from lower levels  is 600 = 500 from the raw + 100 from the activity.

In resume, in FI (fs10n) you can see the WIP account valuated at actual cost. The exact detail of the wip is not shown in ckm3n, but the calc are correct.

Arturo.

[Former Member]

Hi Arturo,

Thanks for the reply. The Answer is really helpful one. Now at-least I can know the reason why I am not able to understand my system.

Actually I am not able to see the details (CKM3N) under 'Consumption' for Raw Materials:

1. Production

2. WIP Production

Actually this will explain the calculation of WIP and its flow to multilevel consumption.

My current system is having EA-APPL , Release -500, Level - 0008. And according to note: 608162, : is it necessary to have Release 600 to see WIP production row in CKM3N.?

Kindly confirm so that I can ask my Basis team accordingly.

Thanks

Kami

[ArturoSenosain]

Hi Kami.

I dont think the version is a problem. I have in mind 2 questions:

1. Your RAW material es S/2? S/3 V/2 ? I never used WIP revaluation with S/2 and V/2 so indeed i dont know how it works.

2. The other idea is related with the activation of COGS, but i undestand you the process "revaluate" is shown in ckm3n. read this note and check if this is active.

https://websmp230.sap-ag.de/sap(bD1lbiZjPTAwMQ==)/bc/bsp/sno/ui_entry/entry.htm?param=69765F6D6F6465...

Arturo.

[michael_savarimuthu]

Kami,

Hope you have activated EA-FIN in your system.  Even when activated, sometimes the flag doesn't get updated in the table TEB11.  Please check the same in SAP Note 1561940.  Since you see WIP Reval in CKMLCP, this may not be an issue.

I am assuming that you have made the necessary configurations in OBYC for transactions PRA, PRM, WPA, WPM.  Also, if you are using activity revaluation in ML, then make sure to update activity update indicator in ML configuration and stop using CON2 for revaluation of orders.

Another important thing about activation of WIP Reval from help.sap.com:

"http://help.sap.com/saphelp_erp60_sp/helpdata/en/9e/9e7a74681f1d4f9ba6f5d64aba4a44/content.htm"

Here's the important message from the above link:

"You must activate the WIP revaluation before the start of the period in which you want to revaluate WIP. The activation will not be taken into consideration for the period closing activities for the current period, as the WIP revaluation is only activated at the start of the next period"

Cheers,

TD