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valuated actual costs

Definition

Specifies the cost element under which the system writes the valuated actual costs. The valuated actual costs are the costs that are written under category K.

Both WIP calculation and results analysis are based on the costs of category K.

Examples

Example of WIP calculation:

Suppose USD 1,000 is charged to a production order in period 01. No goods receipt takes place. You calculate the WIP. USD 1,000 is updated as valuated actual costs . Then an additional USD 300 is charged to the production order. No goods receipt takes place.

The order now carries USD 1,300 in actual costs.

The valuated actual costs are USD 1,000. That is, the work in process is USD 1,000.

To take the additional USD 300 into account, you calculate the WIP again.