Skip to Content
author's profile photo Former Member
Former Member

Confirmation not included in WIP amount

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.

Add a comment
10|10000 characters needed characters exceeded

Assigned Tags

Related questions

1 Answer

  • Posted on Nov 17, 2015 at 04:38 AM

    Hi Devdatth,

    Have you defined line ids for confirmations in WIP configuration? If yes, then check the assignment for them in OKGB? I think you have missed to assign the GL accounts, due to this it has not picked for calculation.

    Regards,

    Mukthar

    Add a comment
    10|10000 characters needed characters exceeded

Before answering

You should only submit an answer when you are proposing a solution to the poster's problem. If you want the poster to clarify the question or provide more information, please leave a comment instead, requesting additional details. When answering, please include specifics, such as step-by-step instructions, context for the solution, and links to useful resources. Also, please make sure that you answer complies with our Rules of Engagement.
You must be Logged in to submit an answer.

Up to 10 attachments (including images) can be used with a maximum of 1.0 MB each and 10.5 MB total.