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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 Project A-0001 1st Level WBS 2nd Level WBS Acc *** Cat Billing Document RA Key
1st Level WBS A-0001 YES YES YES
2nd Level WBS A-0001-01 YES
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.


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


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………….. 5000 ( This account shold not be cost elemeent & precation should be taken care at the time of this account)

WIP Account A/C  ( B /  S A/C)                   5000


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.


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)


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.


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 :


Any suggestions or views would be appreciated.



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    Dear Raj,

    Thank for your sharing, POC here is cumulated by period so we could have COGS but there is no Revenue yet. How can we avoid this problem?




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