Work In Process Calculation
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|
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.