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author's profile photo Former Member
Former Member

WIP Cancellation Needed During Goods Receipt

Hi,

I noticed SAP cancels the WIP total only after the order status changes the DLV or TECO. If that is the case when the partial goods receipts are posted after the WIP postings to BS, the stock accounts will be double posted and this will be wrong.

For example :-

Production order debit costs = $1000

WIP calculated = $1000 and posted to Balance sheet

Partial goods receipt occurs for = $200

Now stock accounts in balance sheet will have a debit value of $200 in addition to the WIP amount of $1000 in the WIP accounts. Hence the total debit value of the balance sheet will be $1200 (200 + 1000) until the final goods receipt is posted so that the WIP is cancelled after the final goods receipt.

Hence the balance sheet debit values will be wrong till the final goods receipt is posted.

How can we correct this situation?

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2 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Nov 19, 2012 at 02:38 PM

    Hi,

    this does not happen automatically but is part of the period-end closing activities.

    When WIP is calculated for your partly delivered order and the order is settled the remaining WIP is 800.

    BR Christian

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  • author's profile photo Former Member
    Former Member
    Posted on Nov 19, 2012 at 02:44 PM

    Hi – check your settings in TC OKG3 and remember that some valueadjustments happends during your period-end closing (settlements).

    BR

    René V. Nielsen


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    • Former Member Former Member

      Fair enough Christian and Rene, however i don't think it will be a huge and complex task for a big company like SAP to devise a proper logic for this WIP re-calculation at the point of each gradual GR.

      This would have been an accurate real-time valuation of WIP and i see there is no significant technical bottleneck present for SAP to program in that way.

      When a GR is posted against a production order, they just have to adjust the WIP for that production order as well. It is just an additional accounting posting and system speed should not be hindered for just an additional accounting document.

      I see this is a great mistake in SAP logic!

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