Material FIN-M is assigned to network activity V10 and is managed in the project stock for WBS element P/4711.1.

The network type is flagged as appended and apportioned to the WBS.

Before the first MRP planning run or before the planned orders are converted into purchase requisitions or production orders, the following amounts appear in WBS element P/4711.1:

• Planned costs of $500,00
• Remaining order plan value of $300,00

The MRP controller begins by converting the planned orders. First, the planned order for the material RAW-M is converted into a purchase requisition and the planned order for the material SEMI-M is converted into production order A2.

The order type is flagged as not appended and apportioned to the WBS.

The remaining order plan value in the WBS element changes by the amount of the internal activities portion of production order A2 to $400,00 (300,00 + 100,00).

After the purchase requisition is converted into a purchase order, a cost commitment of $50,00 also appears in WBS element P/4711.1.

Valuated goods are received for the purchase order, but the price is $10 different at $60. Assuming that material RAW-M is price-controlled, this gives rise to a debit posting of $60,00 in the stock account and credit posting of $60 in the GR/IR clearing account (Financial Accounting).

If the inventory accounts was created as a cost element in CO, the following appear in WBS element P/4711.1:

• Statistical actual costs of $60,00 in the stock cost element
• A cost commitment of $0,00

If material RAW-M is price-controlled the standard price is $50,00, the postings in Financial Accounting are: $50,00 debit to a stock account $10,00 debit to a price difference $60,00 credit to the GR/IR clearing account

In this case, the only figure in the WBS element would be statistical actual costs of $50,00.

Production order A2 is released. Material RAW-M is issued from project stock. The costs of $60,00 are debited to production order A2 under a consumption cost element. The credit posting is to WBS element P/4711.1 under the statistical stock cost element. As the production order is assigned to the WBS element, $60,00 in actual costs continue to appear there.

The completion confirmation settles internal activity costs of $120,00. The order plan value caused by production order A2 in WBS element P/4711 is reduced to zero. The production order shows work in progress valued at $180,00.

Material SEMI-M is then delivered into project stock.

If this is the first delivery, the system will valuate the goods based on the production order costing. $150,00 are credited to the production order and debited to the WBS element with statistical actual costs under a stock cost element.

If the planned order for material FIN-E is converted into production order A1, the remaining order plan value in the WBS element rises by $40,00 + $10,00 = $50,00.

Material issues of $150,00 for SEMI-M and $10,00 for RAW-C and internally activity costs of $30,00 lead to WIP of $190,00 in production order A1. These are delivered to project stock at a price of $200,00. An order plan value of $10,00 remains in the WBS element until the production order is completed technically.

If material FIN-M is assembly on the customer’s own premises, a delivery from the project may take place at this point.

After delivery, production order A1 has a negative balance (reserve for missing costs) of $10,00. A2 has a positive balance (WIP) of $30,00. As there is no more project stock, the amounts are settled to price difference accounts. In the case of production order A1, the debit posting is to change of stock and the credit to the price difference account. The reverse is true for A2.