Period Closing Activities for Work in Process 

Purpose

You transfer WIP (Work in process) to Profit Center Accounting in the course of normal period closing, following results analysis in Product Cost Controlling.

You can transfer work in process as often as you wish, since the system deletes previously transferred data before each transfer.

Should you have already transferred the balance online in the same month, please note that the stock postings made here will also be deleted.

If you would like to transfer work in process online, generate the opening balance in Profit Center Accounting. You do this by performing the period-closing activities once, prior to selecting online transfer.

Prerequisites

To transfer work in process to Profit Center Accounting, you must be using the component Product Cost Controlling (CO-PC).

As the transfer of work in process is based on data from the results analysis in CO-PC, the data cannot be transferred until after this analysis has been performed. The transfer of data to Profit Center Accounting is based on the results analysis, though it does not take account of whether or not a settlement has been made in Financial Accounting (FI).

Perform the transfer to Profit Center Accounting as soon as possible after settlement from CO-PC to FI. If you do not do this, discrepancies may arise between Profit Center-Accounting and FI.

Process Flow

You access the transfer function by choosing the following path from the Customizing menu for Profit Center Accounting: Actual postings ® Transferring selected balance sheet items ® Generate opening balance for work in process.

The selection screen provides you with the choice of all company codes within the active controlling area. You also enter the period and fiscal year.

You generally work with the standard results analysis version 0. Should you wish to use a different results analysis version, note that this must be set up in CO Customizing for updating in Financial Accounting, as the corresponding account determination is required.

The program transfers all changes in work in process within a single period. When running this function for the first time with a given controlling area, please select the field Create opening balance. The system then posts the opening balance to the start period. You can also post the opening balance to period 01 at fiscal year change, so avoiding having to carry the balance forward.

You only have to select the field Create opening balance in the two cases mentioned above. Otherwise, inconsistent data will be generated, leading in turn to incorrect valuations in reporting. Creation of the opening balance also increases the transfer program's runtime.

You should run the program in the background, as large amounts of data are normally selected. If you select the field Line item, a line item will be created for each CO object. When handling a large volume of data, you should only use this option for test purposes. The system does not create any FI documents.

The system assigns work in process to profit centers by taking the assignment of open production orders, projects, sales orders etc. (see Profit Center Assignments).

Result

The balance of work in process from the period in question is transferred to Profit Center Accounting. It is assigned to the profit centers via assigned CO objects.

The program prints an error log. You can display the transferred data in the information system (see Standard Reports). Provided that line items are available, these can be analyzed with the corresponding line item report.