Here I would like to share with you an Interesting and successful experience how to split WIP ( Work in Progress) to separate GL accounts for Material and Overhead costs in S4HANA.
The requirement is to report WIP to separate P&L and B/S accounts as part of Process Order Closing and WIP Calculation (tcode KKAO).
The configuration is in S4 HANA System.
We need to first create Result Analysis key and RA version: Do not forget to activate box Transfer to Financial Accounting.
Next is to Create Line IDs in order to assign to source cost elements.
Now we need to map mask cost elements for WIP and Result Analysis:
In step Update of WIP calculations and Result Analysis we need to assign the cost elements to be used in the target structure:
Finally we define Posting Rules for WIP where split is configured for P&L and BS accounts:
As a result when you run WIP calculation for process orders at Month End via KKAO and then during Process order settlement, system will post WIP to separate GL accounts for material and Overhead cost.
Below is an example for an FI document created in Universal Journal in S4HANA.
I hope you find this blog useful! If you have any questions or comments, please feel free to share. 🙂