Define Posting Rules for Settling Work in Process (SAP Library

Define Posting Rules for Settling Work in Process

In this step you specify the G/L accounts in Financial Accounting to which the process is settled. You assign a results analysis cost element or a group of results analysis cost elements to two G/L accounts.

A posting document is generated in Financial Accounting on the basis of the settlement of work in process.

Data is written to the balance sheet .

Data is written to the statement.

If you have specified a profit center in the order ( product cost collector or manufacturing order) the data is also forwarded to Profit Center Accounting.

You can assign the results analysis data to the G/L accounts at the following levels:

Results analysis categories

The results analysis categories are created on the basis of the assignment of the costs to line IDs:

WIPR - Work in process with requirement to capitalize costs

WIPO - Work in process with option to capitalize costs

WIPP - Work in process with prohibition to capitalize costs

You normally define a posting rule that assigns the work in process with requirement to capitalize costs to the G/L accounts for unfinished products (balance sheet) and stock changes (P/L).

If you are using Profit Center Accounting, you must also create posting rules for the work in process that cannot be capitalized to be able to pass this work in process to a "dummy" account in Financial Accounting. This is necessary because Profit Center Accounting obtains its data from Financial Accounting and normally the work in process that cannot be capitalized should also be shown in Profit Center Accounting. If you pass the work in process that cannot be capitalized to the same account as the work in process with an option to capitalize, you must make a manual correction posting in Financial Accounting after settlement.

If you are calculating the work in process at actual costs, the system creates reserves for unrealized costs if the credit for the production order based on goods receipts is greater than the debit of the order with the actual costs incurred to date. In this case the following results analysis categories are created:

RUCR - Reserves for unrealized costs (group must be capitalized)

ROCU - Reseves for unrealized costs (group can be capitalized)

RUCP - Reserves for unrealized costs (group cannot be capitalized)

Rreserves for unrealized costs must be shown as a liability. If you create line IDs for all three results analysis categories through the assignment, you must define posting rules for all three categories.

Results analysis cost elements

In this case you assign the individual results analysis cost elements to the G/L accounts.

For example, if the work in process for the direct material costs is updated under results analysis cost element 672111 and the work in process for the production costs under results analysis cost element 672131, you can pass this information on to different G/L accounts in Financial Accounting.

Transfer Prices

In the Product Cost by Order component, if you are using multiple valuation views in the calculation of work in process at actual costs, the system automatically assigns the line IDs defined in the results analysis version of the operational valuation view to the results analysis versions of the multiple valuation views referencing the operational results analysis version.

Requirements

You must already have carried out the following steps:

Create controlling area

Create company code

Define results analysis versions

Define assignment (for results analysis categories) or

Define update (for results analysis cost elements)

Actions

1. Decide which G/L accounts you want to settle work in process to.

2. Define posting rules by entering the following data:

Controlling area

Company code

Results analysis version

Profit and loss account

Balance sheet account

You can also specify G/L accounts in the posting rules for which the Post automatically only indicator in the G/L account master is selected. If the G/L account you enter in the posting rules does not have the Post automatically only indicator selected, and if you have to make correction postings for results analysis data, (such as work in process), you have the following options:

You can deselect the Post automatically only indicator in the G/L account master.

You can use a different G/L account for the correction posting.

3. Enter a results analysis cost element or a results analysis category.

4. When you have finished this step, set the "Financial accounting" indicator for the results analysis version.

5. If you are using Profit Center Accounting, you also define posting rules for the work in process that cannot be capitalized.

Additional information

Cost elements for results analysis data

Further Notes

The system reads the posting rules in Customizing each time you settle. If you have changed entries in the posting rules since the last settlement, this may result in inconsistencies between Financial Accounting and Profit Center Accountring.

If you cancel the settlement of the work in process, the system reads the posting rules defined in Customizing again. If you have changed entries in the meantime, the canceled work in process is updated under a different account that the original work in process.

You cannot create cost elements in CO for the G/L accounts that you specify in the posting rules.