wip and variance calculation and settlement

[Former Member]

hi,

i have the scenario below for wip and variance of production order settlement. need your kind advice.

to produce 100 pieces.

1)

month 1 - only able to produce 30

during month1 settlement, the settlement will settle 70 as wip.

dr wip 70

cr change of wip 70

variance counted, say 2 (variance base on 30 pieces produced), but no variance posted.

correct?

2)

month 2 - only able to produce 50

during month2 settlement, the settlement will settle 20 as wip.

dr wip 20

cr change of wip 20

variance counted, say 3(variance base on 50 pieces produced), but no variance posted.

correct?

3)

month 3 - produce the rest of 20 and teco

during month3 settlement, the settlement will reverse wip

dr change of wip 90

cr wip 90

and variance counted, say 2, (variance base on 20 pieces produced), and posted.

dr variance 7

cr cogm 7

correct?

thanks

[Former Member · Accepted solution]

Hi,

yes it is correct.after confirmation of the remaining quantity you need to change your order status to TECO.

At the time of production order settlement, your wip entry will get reverse and variance entry will post to CO-PA.

hope this helps you.

Regards,

Puri.

[Former Member · Accepted solution]

hi,

my final wip reversal figure 90 and variance posting figure 7, both also correct, right?

thanks

[Former Member · Accepted solution]

yes it is correct.

[Former Member]

Hi Banniya,

Yes you are right. Till the order status REL or CNF system will calculate WIP and stored in RA key. Once GR happens order status will be changed to DEL. Here you can do again WIP and variance. Finally when you do setlement, at that time it will reverse all the WIP entries and post the variance to COPA.

Regards

Srinivas Salpala