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Define
Update
For each
line ID , you specify the results analysis cost element under
which the work in process and (under some circumstances) the
reserves for unrealized costs are updated, and assign each line
ID to a
category.
The line IDs put the costs incurred for an
order into groups such as the following:
These groups should be based on the structure
of the cost of goods manufactured in the cost component structure (see
Maintain Cost Component Structure and Define Cost
Components).
The category indicates whether the cost
elements under which the different postings are made are debits or credits for
WIP calculation.
Work in Process
at Actual Costs
The debits and credits of an order are grouped
as follows:
- You must assign all debits, such as for
material withdrawals, internal activites, external activities, and overhead to
line IDs of category K (costs).
The system creates
work in process for each debit posting that is updated under one of these cost
elements. These values are updated under the results analysis cost elements
(cost element category 31) that you specify under Define
update.
- You must assign all credits, such as for
material issues and order settlement to line IDs of category
A (settled costs). For each credit posting that is updated under one
of these cost elements, the system reduces the work in process.
Work in Process
at Target Costs
This category indicates whether the cost
elements under which the costs are written in the cost estimate on which
target cost calculation are based are relevant to WIP calculation. (See also:
Define Valuation Variant for WIP and Scrap (Target
Costs).
- Create line IDs of category K
(costs) for costs relevant to valuation (such as, direct material
costs).
- Create line IDs of category N
(do not take into account) for costs for which no work in process is to be
created (such as production overhead). If you do not create line IDs for these
costs, the system issues an error message.
The apportioned values are updated to the order
under the cost elements that you specify here. For the specified cost elements
you may have to do the following:
- Define reports that show the work in process
and possibly the reserves according to you requirements
- Define posting rules that assign the work in
process and reserves to G/L accounts so that these values can be passed on to
Financial Accounting
In the Product Cost by
Order component, if you are using multiple
valuation views for the calculation of work in
process at actual costs, the entries for the referenced operational
results analysis version are transferred to the referencing results analysis
version of the multiple valuation views when you save your entries.
Requirements
- You must already have processed the
following:
Standard
Settings
If you use a results analysis version that is
in the standard system, you only have to enter the results analysis cost
elements for the data to be calculated.
Actions
1. Enter the
following:
If you defined, in
the results analysis version, that the update is to be carried out without
reference to the results analysis key, the entry is blank.
2. Enter the
following data for each line ID:
- The category (K, A, or N)
- The relevant results analysis cost
elements