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Identifying Costs for WIP Calculation

For WIP calculation, you differentiate between

• debit cost elements and

• credit cost elements

Actual costs are written to the production order under debit cost elements. You indicate these costs for WIP calculation by assigning the cost elements, grouped into line IDs, to category "K".

The production order is credited when

• the finished material is delivered to stock

• the costs incurred are settled.

These postings are written to the production order under credit cost elements. You indicate these costs as being for WIP calculation by assigning the credit cost elements, grouped into line IDs, to category "A".