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 WIP Calculation Using the Object Class Locate this document in the navigation structure

The system calculates work in process to determine what costs were incurred for production orders that have not yet been settled. You can have the system calculate the work in process in the following ways:

  • Separately for each order

This function is supported in period-end closing for the Product Cost by Order component as individual processing or collective processing.

  • For all orders in an object class

This function is performed through the reconciliation ledger for all orders in the object class production . For more information, see the document Cost Element Accounting and Revenue Element Accounting .

In the Product Cost by Order component, you can calculate work in process for each order using two methods :

  • On the basis of the actual costs incurred to date

  • On the basis of the quantities confirmed to date for the individual operations

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The work in process calculated by the system is passed on to Financial Accounting by period, where it is assigned to the following accounts:

Balance sheet

Value of semifinished products

Profit and loss statement

Inventory changes