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 WIP Calculation and Results Analysis

 

As of SAP Accounting powered by SAP HANA, the functionality and transaction codes for the calculation of WIP and results analysis have changed.

WIP Calculation

Transaction: KKAOH

This transaction values production orders only. The production orders are valued at actual cost for the selected plant with the defined legal valuation for a single result analysis version. Customer enhancement and WIP calculation for product cost collectors and process orders are not supported. Multiple valuation is not supported.

In contrast to the classic transaction code for WIP calculation KKAO, the options With Product Cost Collectors, With Process Orders, and All RA Versions cannot be selected since the corresponding functionality is not available.

You can therefore select only With Production Orders, and you can only specify one results analysis version.

Results Analysis

Transaction: KKAKH

Only the following results analysis methods are supported:

  • Revenue-based results analysis (method 01)

    All costs that cannot be directly assigned to the revenue are treated as work in progress until the contract is completed. Reserves may be created if the costs are not sufficient to match the revenue.

  • Cost-based results analysis based on the percentage of completion (method 03)

    Revenue is calculated in accordance with the percentage of costs incurred. A balance sheet posting is created for revenue in excess of billings. A revenue surplus (a type of reserve) may be created if billings are higher than the percentage of completion indicates to be appropriate.

Customer enhancement and the other 15 methods are not supported.

Expert Mode is partially supported.

The KKAKH front end is the same as with the classic transaction KKAK.

Effects on Customizing

Customizing activities are affected as follows.

WIP Calculation KKAOH
Define Result Analysis Versions

KKAOH only supports results analysis versions that are defined for legal valuation.

Multiple valuation is not supported.

Extended Control:

  • KKAOH supports the options Generate Line Items, Assignment/RA Key, and Update/RA Key. The other checkboxes are not supported.

  • The subtab Calculate WIP or Result Analysis For is supported.

Planned Results Analysis is not supported.

Cost Elements: Only the Cost Elements: Result Analysis Data group is supported. The other groups are not supported.

Define Valuation Method (Actual Costs)

Work in process at actual costs functions as follows:

  1. For the status PREL, the status number is 1 (the order is partially released). For the status REL, the status number is 2 (the order is released).

    The system creates work in process in the amount of the actual costs with which the order is debited.

  2. For the status DLV, the status number is 3 (the order has been completely delivered). For the status TECO, the status number is 4 (the order is technically completed).

    The system cancels the work in process. The difference between the debit through actual costs postings and the actual credit of the order from goods receipts is interpreted as a variance with this status.

Define Line IDs

The work in process and reserves for unrealized costs are calculated as a total for each order and distributed to the line IDs.

The line IDs divide the costs incurred for the order into specific groups, such as direct material costs, production costs, and indirect costs.

Assignment of Cost Elements for WIP and Result Analysis

KKAOH only supports the following configuration:

  • Only the ReqToCap column (requirement to capitalize) is supported.

  • The columns Debit/Credit Indicator, Vble/Fixed Indicator, and Accounting Indicator must be marked as + (all).

Update of WIP Calculation and Results Analysis

The ApptNo UM field (Capitalized Costs Apportionment Number) is not supported. Hence WIP apportionment to line IDs is not supported.

Posting Rules in WIP Calculation and Results Analysis

KKAOH calculates WIP at actual cost, but doesn't include the CO88 settlement function. If you want to speed up settlement, you can use CO88H.

Two basic situations will determine different accounts based on posting rules:

  • WIP greater than 0: WIPR (WIP with requirement to capitalize)

  • WIP less than 0: RUCR (reserves for unrealized costs)

Result Analysis KKAKH
Define Result Analysis Versions

KKAKH only supports results analysis versions that are defined for legal valuation. Multiple valuation is not supported.

Extended Control:

  • Checkboxes supported: Generate Line Items, Assignment/RA Key, Update/RA Key.

  • Checkboxes not supported: Split Creation/Usage, Legacy Data Transfer, Deletion Allowed, Update Plan Values. Thus if you select one of these options when running KKAKH, an error message will be issued.

    The sub-tab Calculate WIP or Result Analysis For is supported. Status control A, B and blank are supported. We recommend status control B for better performance when running KKAKH.

    Planned Results Analysis is not supported.

    Cost Elements: All accounts are supported.

Define Valuation Method (Actual Costs)

Result analysis for sales orders functions as follows:

Currently, two commonly used methods 01 and 03 are supported with standard mode. Expert mode is partially supported.

Be aware of the detailed settings of that part of Expert Mode that is supported:

  • Profit Indicator

    Only M and Q are supported as the profit indicator.

    If the Result Analysis Method is 01: Revenue- based method, for each status, the RA type E: Revenue-Based Results Analysis and Profit Indicator M: With Profit Realization are supported.

    If the Result Analysis Method is 03: Cost-based results analysis, the RA type E: Revenue-Based Results Analysis and the Profit Indicator Q: Percentage-of-Completion are supported.

Valuation:

  • Plan Version

    Only plan version 0 is supported.

    Note that for sales order items, you always plan the costs in plan version 0. If you want to execute results analysis on sales order items, therefore, you should always enter plan version 0.

  • Profit Basis

    For results analysis and WIP, only support C and E are supported as the profit basis.

  • Commitments

    In results analysis, only OBLIA = blank. is supported.

  • Final Results Analysis

    Only X (for last status) or blank (for other statuses) is supported.

    Setting Final Results Analysis to X means that cost of sales is set equal to the actual costs, and calculated revenue is set equal to the actual revenue. The final profit is actual revenue less actual costs. If the resulting profit is negative, a loss is posted. Anything else, such as revenue in excess of billings, revenue surplus must be zero.

  • Sales Order Structure

    In results analysis, only sales order structure BLANK or E (Process Items Individually) are supported.

Extended Control:

  • Valuation Level

    Only valuation level S (Valuation at Totals Level) is supported.

  • Cutoff Period

    Only D (Cutoff Period = Period Before Results Analysis Period) is supported as the cutoff period.

  • End Indicator

    Only E (Perform RA up to RA period and Ignore remainder) is supported.

  • Method for Including Manual Results Analysis Data

    Only E (Manual Change) and Z (Manual Addition) are supported.

  • Input and Output Quantities in Results Analysis

    Only BLANK (No Quantities) is supported.

  • Time Frame

    Only OBLIR = blank (No Restrictions) is supported.

Define Line IDs

The line IDs put the costs incurred for the order into specific groups.

Define Assignment for Result Analysis

In the assignment, KKAKH only supports the following configuration:

  • Only the ReqToCap column (requirement to capitalize) is supported.

  • The following columns must all be marked as + (all):

    Debit/Credit Indicator

    Vble/Fixed Indicator

    Accounting Indicator

Define Update for Result Analysis

Only the categories K (Costs), D (Special Costs), A (Settled Costs), E (Revenue), and N (Costs Not to be Included) are supported.

The ApptNo UM field (Capitalized Costs Apportionment Number) is not supported. Hence WIP apportionment to line IDs is not supported.

Result

KKAKH calculates WIP at actual cost, but doesn't include the VA88 settlement function. If you want to speed up the settlement, you can use VA88H.

With the four values Planned revenue R(p), Planned Cost C(p), Actual Revenue R(a) and Actual Cost C(a) for sales order items, the system will calculate the Cos Costs Affecting Net Income in 01 result analysis method, or calculate the Revenue Affecting Net Income in 03 result analysis method.

You then settle the following:

  • The cost of sales or change to CO-PA

  • The revenues or change to CO-PA

  • The change/ cancellation of the WIP or the reserves to FI and EC-PCA