(13) Inventory Determination "WIP at Actual Costs"
Use
You can use the method Inventory Determination "WIP at Actual Costs" for Objects Not Carrying Revenue for projects.
Prerequisites
Choose the results analysis method in Customizing for the Project System under Revenues and Earnings
® Automatic and Periodic Allocations ® Results Analysis ® Edit Results Analysis Keys and Version ® Define Valuation Methods for Results Analysis in the simplified maintenance of the valuation methods.Features
The method Inventory Determination "WIP at Actual Costs" for Objects Not Carrying Revenue calculates the value of the inventories from the difference between the debit and credit of an object.
If the debit is greater than the credit, the system creates work in process in the amount of the difference.
If the debit is less than the credit, the system creates reserves for unrealized costs in the amount of the difference.
This method of results analysis is the same as the calculation of work in process at actual costs in Cost Object Controlling in Product Cost by Order.
See also:
Work in Process in Product Cost by Order