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Former Member
Nov 16, 2015 at 03:33 PM

Confirmation not included in WIP amount

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Hi All,

I am new to Product costing and I have some doubts on WIP calculation via Product cost by Order method. Below are the steps I have performed on the Production Order before calculating WIP.

1. Production Order created and released for order quantity 100.

2. After Release checked the Order detailed report KKBC_ORD by cost trend layout and got following values:

Transaction Material Description Total Plan Costs Goods Issues 1000/R-B201 Fly wheel 8,853.00 1000/R-B101 Casing 12,830.00 1000/R-B301 Hollow shaft 17,015.00 1000/R-B401 Electronic TURBODRIVE 4,683.00 Goods Issues 43,381.00 Confirmations 4220/1421 Pump Production / Wage Hours 1,833.08 4230/1421 Pump Assembly / Wage Hours 4,382.92 4280/1421 Quality Control / Wage Hours 233.32 4220/1420 Pump Production / Machine Hours 1,67,662.32 4230/1420 Pump Assembly / Machine Hours 783.89 4220/1422 Pump Production / Setup Hours 7.12 4230/1422 Pump Assembly / Setup Hours 38.5 Confirmations 1,74,941.15 Miscellaneous 300900 Work Scheduling 12 Miscellaneous 12 Goods Receipt 1000/R-F101 Pump 53,183.00- Goods Receipt 53,183.00-

After this followed below transactions:

1. Goods Issue to Production Order of complete 100 quantity.

2. Confirmation on Production Order of quantity 40

3. Template Allocation of Process Cost

After the above, KKBC_ORD looked as below:

Transaction Material Description Total Plan Costs Total Actual Costs Goods Issues 1000/R-B201 Fly wheel 8,853.00 8,853.00 1000/R-B101 Casing 12,830.00 12,830.00 1000/R-B301 Hollow shaft 17,015.00 17,015.00 1000/R-B401 Electronic TURBODRIVE 4,683.00 4,683.00 Goods Issues 43,381.00 43,381.00 Confirmations 4220/1421 Pump Production / Wage Hours 1,833.08 733.21 4230/1421 Pump Assembly / Wage Hours 4,382.92 1,753.21 4280/1421 Quality Control / Wage Hours 233.32 102.65 4220/1420 Pump Production / Machine Hours 1,67,662.32 67,063.32 4230/1420 Pump Assembly / Machine Hours 783.89 313.57 4220/1422 Pump Production / Setup Hours 7.12 7.12 4230/1422 Pump Assembly / Setup Hours 38.5 38.5 Confirmations 1,74,941.15 70,011.58 Miscellaneous 300900 Work Scheduling 12 12 Miscellaneous 12 12 Goods Receipt 1000/R-F101 Pump 53,183.00- 0 Goods Receipt 53,183.00- 0

Now when I calculate WIP using KKAX t-code, I get the WIP values as below:

Order Currency WIP Cumulative WIP Period Material ORD 60003305 EUR 43,393.00 43,393.00 R-F101

So, if you see WIP = Good Issue (Actual Cost) + Work Scheduling Cost = 43381+12= 43393

My question is why confirmation cost which are also the actual costs not included in WIP calculation?

Please advise.