WIP reversal entry not appearing during final settlement of production order.

[former_member518494]

Hi,

I want to know what could be reason for the reversal entry not posted of WIP during final settlement of production order?

We have created production order and then GI & confirmation, wherein for some X Qty i am able to get WIP and entry is posted correctly during partial confirmation.

When it comes to final confirmation, status is TECO, final GR is posted then variance is calculated, then at the time of final settlement in KO88 only Variance entry is posted but reversal of WIP entry is not appearing.

I checked KKAX at the time of final settlement where it is appearing as Zero and also checked FBL3N for the respective GL's where entry is not visible which means reversal happend but reversal entry is not appearing.

RA Key used for the current production order : 000002 (WIP basis on Actual cost).

Please share your valuable comments.

Thanks,
Esha

[rajneesh_saxena]

Hi Esha

Already The seniors have given you good insight.

Just for clarifications I will mention that for each period you have to calculate WIP and variance (both in update mode) and then do the settlement, surely WIP reversal entry will be posted together with the variance entry.

As you mentioned in your original query that KKAX is showing ZERO, that way system is telling you that since the order is delivered completely (DLV) or it is technically completed (TECO), so the WIP figure should be ZERO now. And when you settle the order system post a reversal entry with the amount  earlier posted as WIP against this order in earlier period,hence WIP account is nullified.

Regards

Rajneesh Saxena

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[former_member518494]

I have recalculated WIP cost and have re run the settlement....Now it is working.

Thanks all

[kamalkumar_biswas2]

Hi Rao

Thats correct and which told from the beginning that if you do not settle WIP question of reversal does not arise,,,

Please close your thread marking correct answer so that other can get help

Kamal

[kamalkumar_biswas2]

Hi Esha

Close your thread....

kamal

[former_member518494]

Thanks for your reply.

@Mukthar: In OKGC setting is maintained correctly of "Cancel WIP in DLV/TECO"

@ Kamal: When we do final settlement ( ie post variance), there will be two set of entries generated ie

1) COGM & Variance

2) Reversal WIP = entry is presently missing.

[kamalkumar_biswas2]

Hi Rao

Have you settled this order after WIP calculation? If not there is no question of WIP reversal.

Kamal

[former_member198650]

Hi Esha,

In OKGC, have you maintained for the status DLV/TECO for cancel WIP?

Regards,

Mukthar

[kamalkumar_biswas2]

Hi Rao

Within the same period you can do either WIP (if status is PDLV/REL) with settlement or Variance (status is TECO/DLV) with settlement. You can't do both.

Posting is made at the time of settlement only..so there is no WIP if you have calculated variance and do settlement. System is showing rightly

Kamal