Work in Process Calculation
Content
Work In Process Calculation
HI Team,
This document will describe the WIP Calculation form the Project System. Basically the Project System comes under the ETO Scenario i.e., MTO Here I am not going to describe the Project Structure & I am straight way going to present the calculation part of the WIP Calculation. For understanding better I am going to describe the example of requirement.
Requirement : WIP Calcualtion based on the Qty Deliverable. For Ex; I have a WBS with 2 Qty Deliverable & Cost occured for the respective WBS would be 1000/- till now. Then the WIP would be Rs.5000/- for the first month of my WIP Calcuation. In the 2nd month 1 Qty was delivered then the 2nd month end my WIP would be Rs.2,500/- ie., based on my deliverable Qty (Percentage of Completatioin (POC) Method)
1) Creation of Project : Creation of Project with the 2 WBS Elements in the 2nd level & 1 WBS Element would be the 1st level. All the WBS elements should be activated with Account Assigment Category . RA Key is the important key to calculate the WIP & it should be assigned to all the Delierable WBS Elements
For better understanding i have taking the WBS Structure like below :
Project 1st Level WBS 2nd Level WBS
Project A-0001 1st Level WBS 2nd Level WBS A-0001 A-0001-01
Acc *** Cat YES YES
Billing Document YES
RA Key YES
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Work In Process Calculation
A-0001-02
YES
. 2) Sales Order Creation : Sales Order Creation with 2 Qty with the WBS A-001 Account assignment & the revienue updates into respective WBS Elements & the same can be visiable in reports
3) Planned Qty maintance : CJS2
Planned Qty should maintained with the SKF ABGMNG to calcualted the Qty based the WIP. ABGMNG is the SAP standard SKF & the same should be use in this case.
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Work In Process Calculation
4) Expness booking to the respective WBS : The cost booked into the 2 WBS elements through direct posting from FI. Total Cost would be Rs.5000/-
CJI3 Report :
5) Running the WIP KKA2 : Running the WIP Calcualtion for the respective the WBS
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Work In Process Calculation
In above activity you can able to idenfity the Actual cost & WIP Amount. You can also obser the POC % is 0. This only stastical posting. If every thing found correct then it should be saved. In he next step it ll be update to the FI.
6) Rulling the Settlment CJ88 : At the time of settlemtn sytem ll consider the WIP Amount which was calculated in the previous step & ll post to FI side. The account document would be
WIP Account A/C ( P & L A/C) Dr.............. 50000 ( This account shold not be cost elemeent & precation should be taken care at the time of this account)
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Work In Process Calculation
WIP Account A/C ( B / S A/C)
50000
This is month end activity & the amout aupdated in FI books of accounts. If suppose the coming moth 1 qty ll be delivered then the impact wouild be ..! let see.
7)1 Qty Deliverty from SD : VL01N : Nothing to do in this step for this WIP Calcuation.
8) Maintain the Deliverable Qty KB31N : This is important point & needs to maintin the 1 Qty here then only you ll get the impact on WIP Calcualtion. Hence 1 Qty was delivered & the same 1 Qty has been maintaned here.
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Work In Process Calculation
9) WIP Calculation KKA2 : Second month WBs caculation. As per as the above requirement my my WIP would be 2500/- since 1 Qty was delivered (50% POC)
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Work In Process Calculation
Here you can find the WIP Amount Rs.2500/- & the WIP POC would be 50%. If the calcualtion is correct then its required to save the WIP
10) Settlement CJ88 : Here the amoutn 2500/- would be accounted as WIP.
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Work In Process Calculation
Its going on.., until unless the WBS status would be TECO or DLV. Once its TECO or DLV then the entire WBS would be reversed.
I have shared only one insight on the WIP Calculation & there are several methods would be available on WIP Calcuations based on the client requirement. I have not covered the RA Key configuration in this post. Here you can find the WIP methods i.e., each & every method would have the different accounting impact.
WIP Methods are :
Generated by Jive on 2013-07-06+02:00 8
Work In Process Calculation
Any suggestions or views would be appreciated.
Regards
Raj
Generated by Jive on 2013-07-06+02:00 9
HI Team,
This document will describe the WIP Calculation form the Project System. Basically the Project System comes under the ETO Scenario i.e., MTO Here I am not going to describe the Project Structure & I am straight way going to present the calculation part of the WIP Calculation. For understanding better I am going to describe the example of requirement.
Requirement : WIP Calcualtion based on the Qty Deliverable. For Ex; I have a WBS with 2 Qty Deliverable & Cost occured for the respective WBS would be 1000/- till now. Then the WIP would be Rs.5000/- for the first month of my WIP Calcuation. In the 2nd month 1 Qty was delivered then the 2nd month end my WIP would be Rs.2,500/- ie., based on my deliverable Qty (Percentage of Completatioin (POC) Method)
1) Creation of Project : Creation of Project with the 2 WBS Elements in the 2nd level & 1 WBS Element would be the 1st level. All the WBS elements should be activated with Account Assigment Category . RA Key is the important key to calculate the WIP & it should be assigned to all the Delierable WBS Elements
For better understanding i have taking the WBS Structure like below :
Project 1st Level WBS 2nd Level WBS
Project A-0001 1st Level WBS 2nd Level WBS A-0001 A-0001-01
Acc *** Cat YES YES
Billing Document YES
RA Key YES
Generated by Jive on 2013-07-06+02:00 1
Work In Process Calculation
A-0001-02
YES
. 2) Sales Order Creation : Sales Order Creation with 2 Qty with the WBS A-001 Account assignment & the revienue updates into respective WBS Elements & the same can be visiable in reports
3) Planned Qty maintance : CJS2
Planned Qty should maintained with the SKF ABGMNG to calcualted the Qty based the WIP. ABGMNG is the SAP standard SKF & the same should be use in this case.
Generated by Jive on 2013-07-06+02:00 2
Work In Process Calculation
4) Expness booking to the respective WBS : The cost booked into the 2 WBS elements through direct posting from FI. Total Cost would be Rs.5000/-
CJI3 Report :
5) Running the WIP KKA2 : Running the WIP Calcualtion for the respective the WBS
Generated by Jive on 2013-07-06+02:00 3
Work In Process Calculation
In above activity you can able to idenfity the Actual cost & WIP Amount. You can also obser the POC % is 0. This only stastical posting. If every thing found correct then it should be saved. In he next step it ll be update to the FI.
6) Rulling the Settlment CJ88 : At the time of settlemtn sytem ll consider the WIP Amount which was calculated in the previous step & ll post to FI side. The account document would be
WIP Account A/C ( P & L A/C) Dr.............. 50000 ( This account shold not be cost elemeent & precation should be taken care at the time of this account)
Generated by Jive on 2013-07-06+02:00 4
Work In Process Calculation
WIP Account A/C ( B / S A/C)
50000
This is month end activity & the amout aupdated in FI books of accounts. If suppose the coming moth 1 qty ll be delivered then the impact wouild be ..! let see.
7)1 Qty Deliverty from SD : VL01N : Nothing to do in this step for this WIP Calcuation.
8) Maintain the Deliverable Qty KB31N : This is important point & needs to maintin the 1 Qty here then only you ll get the impact on WIP Calcualtion. Hence 1 Qty was delivered & the same 1 Qty has been maintaned here.
Generated by Jive on 2013-07-06+02:00 5
Work In Process Calculation
9) WIP Calculation KKA2 : Second month WBs caculation. As per as the above requirement my my WIP would be 2500/- since 1 Qty was delivered (50% POC)
Generated by Jive on 2013-07-06+02:00 6
Work In Process Calculation
Here you can find the WIP Amount Rs.2500/- & the WIP POC would be 50%. If the calcualtion is correct then its required to save the WIP
10) Settlement CJ88 : Here the amoutn 2500/- would be accounted as WIP.
Generated by Jive on 2013-07-06+02:00 7
Work In Process Calculation
Its going on.., until unless the WBS status would be TECO or DLV. Once its TECO or DLV then the entire WBS would be reversed.
I have shared only one insight on the WIP Calculation & there are several methods would be available on WIP Calcuations based on the client requirement. I have not covered the RA Key configuration in this post. Here you can find the WIP methods i.e., each & every method would have the different accounting impact.
WIP Methods are :
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Work In Process Calculation
Any suggestions or views would be appreciated.
Regards
Raj
Generated by Jive on 2013-07-06+02:00 9
