Skip to Content
0
Apr 27, 2016 at 06:03 AM

WIP & Reserve for Unrealized Costs

1684 Views

Dears

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.

Best regards,

Attachments

Capture.PNG (35.6 kB)