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Former Member
Mar 12, 2009 at 05:47 PM

WIP: Settlement

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Hello Everyone,

I have question regarding running of one cycle with WIP (Make TO Stock Scenario).

Suppose we have made one production order in the month of Jan for 2 finished goods. And end of month we have received only 1 finished goods and another one is in WIP.

1. I would like to know cycle of production order for the Month of JAN as well as in FEB

*In month of JAN:*

CO01 (Creation of Production order).

MB1A ( Issue of Raw material for PO)

CO15 ( Confirmation)

MB31 ( Receipt form Production Order )

KGI2 ( Calculation of OH)

KKAX (Calculation of WIP.

KO88 ( Settlement of WIP Entry: WIP B&S A/Cu2014DR

WIP P&L A/C---CR

In month of FEB:

MB31 (Receipt of Production Order for remaining goods).

KKAX ( Calculation of WIP)

KKS2 ( Caculation of Varience)

KO88 (Settlement of WIP Entry: WIP P&LA/Cu2014DR

WIP B&S A/C--CR

( Reversal entry for WIP in 1st month)

Price diference--DR

Change in Stock---CR

( Calcualtion of Varience)

Question

1 Should we settle the PO in month of JAN?

2. Are the above entries about Settlement in Jan and Feb are correct?

3. Do let me know correct process of WIP..

I would appreciate your reply!!!!!!

Thanks,

Sneha

Edited by: Sneha Latha on Mar 12, 2009 6:58 PM

Edited by: Sneha Latha on Mar 12, 2009 7:27 PM

Edited by: Sneha Latha on Mar 12, 2009 7:37 PM

Edited by: Sneha Latha on Mar 12, 2009 7:42 PM

Edited by: Sneha Latha on Mar 12, 2009 7:43 PM