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Settlement to WIP G/L

May 03 at 07:19 AM

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Hi Experts,

I want to know impact of settling my project cost onto a WIP G/L.

I have costs as well as revenues booked against my project WBS. In allocation structure I have maintained cost element group w.r.t. G/L though which cost and revenues are booked in project.

I want to settle it to a WIP G/L as we don't have COPA implemented here.

I want to know impact of it on Finance accounting if i execute this settlement.

Is it a right practice to settle it to a WIP G/L in absense of COPA?

Which one would you recomment in such a case?

Thanks & Regards

Saurabh

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Hi Experts,

Any response on this please?

Thanks.

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1 Answer

Fatih Osman Kilic May 03 at 08:22 AM
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Dear Saurabh Tiwari,

Settling the costs occured on wbs to WIP G/L is not the best practice. WIP process is generally used for not finished operations. After you finished the operations on wbs, you need to settle it to stock, cost center or COPA.

If you're producing goods with the use of wbs it would be better to settle all costs to stock account through produced material.

Another option is settling the costs to COPA but you're not using COPA.

You need to decide which CO object you're going to use for settlement according to your reporting processes. It can be cost center or not doing settlement is another option.

Regards,

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Hi Osman,

Thanks for your comments. That's really helpful.

Actually we have WBS against which we are booking revenues also through customer billing and a revenue G/L is recording against its accounting entries.

And, we have only 2 options to settle WBS: Cost center and G/L.

If I settle it to cost center then how in FI reporting we can view cost and revenues in report against WBS elements/Project?

Please suggest.

Thanks & Regards

Saurabh

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Dear Saurabh Tiwari,

If you settle the wbs to cost center, you lost the wbs elements data in FI docs. You can fill the wbs element data in settlement accounting document by using FI 1120 event in FI document assignment field or text field.

But if you do this you can report wbs element in line item reports not in drill-down or report painter reports.

But main thing is reporting a CO object in FI side is not possible for all postings. You need to report these data in CO reports.

Regards,

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