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Define Line
IDs
Here you create
line IDs . The line IDs serve to group the work in process and
reserves for unrealized costs according to the requirements of Financial
Accounting.
The
work in process or
reserves for unrealized costs are calculated as a total for each
order and apportioned to the line IDs. You can define separately for each line
ID whether the work in process for that line ID must be
capitalized.
WIP calculation updates the work in process and
reserves for unrealized costs on the order, grouped by line ID. To pass the
data on to Financial Accounting, you must define posting rules that link this
data to G/L accounts.
Also note the following:
- To calculate the work in process using actual
costs, you must create an additional line ID for the cost elements under which
the goods receipts are posted.
- For each line ID, you must create a cost
element (type 31). If you separate the values according to creation and usage,
then you must create two cost elements for each line ID.
- In Customizing for Product Cost Planning,
specify in the step
Define cost components which values are relevant to inventory
valuation, physical inventory valuation, and tax-based inventory valuation.
Cost components classify the costs calculated in the cost
estimate into groups.
The line IDs for WIP
calculation are normally structured according to the same logic as the cost
components in Product Cost Planning. For example, a line ID "raw materials"
normally has the same cost element interval assigned to it that is assigned to
the cost elemente "raw materials".
It would also be
possible to structure the line IDs according to the value fields in
Profitability Analysis. In this case you would create line IDs for the cost of
goods manufactured (fixed and variable), sales and distribution costs,
administration costs, and so on.
Example
Suppose you create the following line IDs for
WIP calculation:
- Production overhead rates
The system calculates the work in process for
the period for a
manufacturing order or
product cost collector and distributes the calculated value to
the line IDs in accordance with the cost element groups assigned to the line
IDs. This allows it to calculate data such as:
- The value of the work in process incurred due
to the withdrawal of a raw material
- The value of the work in process incurred due
to an activity allocation
Requirements
You must already have processed the following
steps:
Standard
Settings
The standard system contains a number of line
IDs.
Activities
Create line IDs according to your
requirements.
Further
Notes
For more information, see the documentation
Cost Object Controlling in the R/3
library.