WIP calculation and effect in FI

[Former Member]

Hi all

Could anybody tell me that after calculating the WIP through T-Code KKOA, How we can show this WIP in FI boks because after calculating the WIP through KKOA there is no FI entry. If we want to show this WIP in balance sheet how we can do in SAP. Because in our organisation product cycle time is 20 days and there is huge WIP.

Thanks in advance

Amitha

[Former Member · Accepted solution]

Hi,

After calculation WIP Through T.code KKAO Or KKAX , Then you need to do the settlement through KO88 T.code , then the system will generate the FI entries

WIP (B/S) A/C Dr

TO WIP Change A/C (P&L)

Regards

ANJI

[Former Member]

Hello

When materials are used for orders or production orders, WIP is posted in Inventory accounting. Assume you have configured that in the transaction and MM-FI integration.

WIP is a balance sheet account. Activity allocation & overheads are also posted to WIP. This can be manual or automatic

WIP is adjusted automatically and only periodic run is require to process WIP

You can use the MM transaction MIGO to enter the consumption of materials in the production process (goods issue for order) in two units of measure (piece and kilogram). This means that the amount in the valuation unit of measure is used for updating work in process in Inventory Accounting.

Internal activities are allocated upon confirmation.

Overhead can be allocated based on quantities or as a percentage of the direct costs. Furthermore, when overhead is posted, the WIP inventory is debited and the cost center is credited (primary posting since it is relevant to the inventory). Actual overhead costs are calculated in each period.

When goods receipts (GR) from production are posted, work-in-process inventory is credited and the warehouse inventory is debited. This posting is always based on the GR quantity in the valuation unit and is valuated with the standard price of the material being manufactured.

A breakdown of the balance sheet items in the WIP account enables you to analyze the inventory change in detail.

Comparison of Posting Methods

Posting

Inventory Accounting is not active

Inventory Accounting is active

Material consumption for manufacturing order

50 kg

Material A (standard price = 10 per kg)

Primary posting:

Debit Material Costs 500

Credit Inventory 500

Primary posting:

Debit Work in Process 500

Credit Inventory 500

Activity confirmation for manufacturing order

5 hrs

Activity type A,

Cost center A (10 per hour)

Secondary posting:

Activity allocation

- Debit Production Order 50

- Credit Cost Center 50

Primary posting:

Debit Work in Process 50

Credit Allocated Activities 50

(the cost center is credited)

Also ensure WIP is properly set in the FSV for reporting purposes.

Check this link for WIP clearing.

http://help.sap.com/erp2005_ehp_02/helpdata/en/5b/51863fb8402117e10000000a114084/frameset.htm

Reg

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