In period 1 there is a WIP posted of 22000 USD in period 2 some further goods issue are done to the extent of 15000 USD . How will system calculate WIP for period 2?
System will post a delta WIP of 15000 USD in period 2.
What is the basic difference in WIP calculation in product cost by order and product cost by period (repetitive manufacturing)?
Generally in product cost by order WIP is calculated at actual costs and in product cost by period WIP is calculated at target costs
What are the configuration settings for calculating WIP in SAP?
You define secondary cost elements of type 31 first.
You need to define the Results Analysis version
This results analysis contains line ids which are basically nothing but break up of costs
Next you define assignments-> here you assign source cost elements to the line ids defined above
You also define the secondary cost elements which are assigned to the line ids.
In the end you define the Finance GL accounts which are debited and credited when a Work in Progress is calculated.
Please refer to the configuration document for more detailed information
Material Ledger
What precautions have to be taken while switching on the material ledger for a plant?
A material ledger once activated for a plant cannot be switched off. Therefore it is important that the material ledger be activated carefully for a plant.
How do you go about configuring material ledger?
The following are the steps:-
1) Activate Valuation Areas for Material Ledger
2) Assign Currency Types to Material Ledger Type
3) Assign Material Ledger Types to Valuation Area
4) Maintain Number Ranges for Material Ledger Documents
5) Activate Actual costing (wheteher activity update relevant for price determination)
6) Activate Actual cost component split
7) Customizing settings in OBYC
What are the problems faced when a material ledger is activated?
When a material ledger is activated it is imperative that actual costing run has to be done every month. Actual costing run needs to be done immediately after the new month roll over. After the actual costing run you cannot post any MM entry to the previous period.
Period End Closing Activities in Controlling:
The following are the period end closing activities in Controlling:
Repost CO Documents that was incorrectly posted
Run Distribution or Assessment Cycles
Run the Overhead Calculation in Product Costing
Run the WIP Calculation in Product Costing
Run the Variance Calculation in Product Costing
Run the Settlement Calculation in Product Costing which will post all the WIP and variance to Finance and PA.
Calculate FI Data for Transfer to Profit Center
Transfer Balance Sheet Items like Recievables, Payables, Assets and Stock
Run Results Analysis for Sales Order if applicable
Run Settlement of Sales Orders to PA.
