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WIP coming due to high price of SFG as compared to FG

Former Member
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We have a issue in WIP settelment throug CO88, at the time of order creation and subsequent issue of components, the cost of component was more then the cost of FG and because of that total cost of GI was more then Cost of FG produced and so the difference of cost is coming in WIP

like A is FG and B is SFG

BOM is lile 1 A need 1 B and we have a order of 10 qtd of A which require 10 Qtd of B,

Cost of A is 2 Rs and cost of B is 3 Rs(They had not run the costing run before)

so the total GI is 30Rs and total GR is 20 Rs

although there is no WIP after completion of order but that diffrence of 10 rs is not going from WIP GL calculated after CO88

KIndly advice

Accepted Solutions (0)

Answers (2)

Answers (2)

former_member196398
Active Contributor
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Dear,

The orders which has gone through WIP process needs to have "DLV" or "TECO" status for the WIP entry to be removed and the variance settled to the material account.

Please set TECO status for the orders and complete all the CO period end transactions like WIP calculation, Variance Calculation and settlement.

Regards,

Prasobh

madlercm
Active Contributor
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Have you settled the order?

Former Member
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yes, the order is settled.

sundaresan_velayudam
Active Contributor
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yes, the order is settled.

I don't think so,

if the order is settled the Cost ( the variance ) will post in to Cost Of Goods Manufactured GL account.

Check your CO consultant, whether they maintained WIP GL as a COGM