I am doing the WIP calculation of one production order (MTO Scenario).
I have understood the WIP (legal Valuation) figures. But not able to understand the WIP data Reserve for Unrealized Costs.
I have found that the actual costs so far booked on the order is equal to 1,824,007.03 is coming as WIP.
But how to interpret the amount 5,196,744.92 ( -) shows as Res for Unrealized Costs ?\
Please see the relevant postings on the Production Order:
Total actual cost booked (Debits) = 5,798,942.73
FG receipt from the order (Credit) = 3,974,935.70-
Difference = 1,824,007.03 (WIP)
Please help me to understand this.