WIP - Cost elements
Hello All
My WIP calculation is working fine. KKAX is calculating WIP correctly at Actual Cost and FI Postings happening fine.
When I look at the Production Order -> Cost -> Analysis , I can see the WIP based against the 2 Cost Elements linked to my 2 Line ID's.
For example :
Line ID Cost Element
A 1
B 2
I can also see the 'Technical RA cost element' which we link in Result Analysis Version : OKG9 (for example : Cost element 3)
but the value is zero.
As I understand, SAP uses Cost element 3 only for internal calculation purpose and WIP is stored against Cost element 1 and 2 linked to line ID.
I want to know if my understanding is correct ?
If yes, then why SAP display's cost element 3 in Production order WIP field.
If no, in which scenarion I will ever see any value in cost element 3 against Production Order.
Best Regards
Edited by: Purohit Vijay on Nov 19, 2010 4:18 PM
HI all,
As i understood with the above discussion is Secondary Cost element which i Maintained in OKG9 is for sap internal calculation purpose and we are maintaining P&L & BS GL Account in Posting Rules for Settling Work in Process (OKG8) which is to post an accounting entry in FI.
eg:- WIP dr
Inventory Change Work in Process cr
but i need clarity on updates(OKG4)Exactly which cost element we are maintain and what is the purpose. and like wise we are doing masking on ASSIGNMENT(OKG5).
kindly provide your valuable inputs for my clearing understanding for RA(WIP)
Best Regards
Similar Messages
-
Cost elements for WIP (TCODE : OKGA)
Hi All,
I am working with Production Order wip calculation, varaince and settlement.
In the RA key configuraion,(for WIP calculation)In OKGA, tcode we define, the cost elements for a perticular line id, for WIP calculation.
I wanted to know, what is the purpose of these two cost elements.
If I execute line item report, I dont see any value on these cost elements, after wip calc and settlement.
However, I see the work in process on it, in the layout. I want to know, the exact purpose of these cost elements assignment.
Is there any internal controlling document that is getting posted?
Regards
SRHi Swastik,
Those cost elements (category 31) are used to calculate and store WIP values at the detailed level of so called line IDs.
Line IDs are groups of cost elements that were posted to production order.
For example you can calculate and store WIP separately for Raw Materials, Semis, Activities and overhead.
You can also settle them to different GL Accounts via mapping in txn.OKG8.
Hope it helps,
Szymon -
Cost of Goods Sold by Cost Elements Accounting
EBS Version: 12.1.3
Is it possible to define the COGS (OM: Generate Cost of Goods Sold) to capture Cost of Goods Sold by Cost Elements ?
The way the cost is built through the WIP process is through Cost Elements:
* direct material,
* direct labor,
* manufacturing overhead
* material overhead
* etc...
All these elements are captured separately in WIP and in separate accounts.
Is it possible to keep in separate COGS accounts (COGS -Direct Material, COGS Direct Labor, etc.) and not just be lumped into one Total COGS account at the time of sales order issue.
Is It possible with SLA Customization (derivation rules, etc.)? or modifying workflow?? I need detailed solution please!!!
I need the information in SLA, i don't care if not possible in material distributions.
Thanks...I need help experts!!!
-
Cost element is not assigned to cost component structure
Dear Team,
While doing the settlemnt through KO88 system is showing the message like below
Cost element 433001 is not assigned to a cost component in CostCompStruct Z1
Message no. MLCCS 010
Diagnosis
You have activated the actual cost component split.
No cost component has been assigned to cost element 433001 origin group
in cost component structure Z1 for chart of accounts XXX. The system is
unable to assign the value to a cost component.
System Response
You cannot carry out posting.
Procedure
Check whether for this operation the value to be posted is to be
assigned to this cost element.
User has done tchnically completed from CO side .But system is showing the open status in FI.
So we have suggested to the user to do settlemt through KO88 system is showing the above message .Half of the production orders we can able to close through Ko88. Some of the PO we are facing the above issue.The concern GL account showing by the system is maintained as a sundry receivables a/c.
Please advice how to proceed further.
Thanks for the consideration.
Regards,
SumaDear Sir,
System is showing the GL account is not relating the cost element a/c ,The concern account belongs to Sundry receivables account.
The configuration is done correctly with all expenses GL a/c in OKTZ as well WIP accounts assigned corrctly in OKG8. How the system is showing this account which i am not understanding.
Please advice to resolve.
Thanks for the consideration.
Regards,
Suma -
IS POSSIBLE TO SPLIT COGS IN COST ELEMENTS
Is it possible to define the COGS (OM: Generate Cost of Goods Sold) to capture
Cost of Goods Sold by Cost elements ?
The way the cost is built through the WIP process is through Cost Elements:
direct material, direct labor, manufacturing overhead and material overhead
All these elements are captured separately in WIP and in separate accounts.
Is it possible to keep in separate COGS accounts (COGS -Direct Material, COGS
Direct Labor, etc.) and not just be lumped into one Total COGS account at the
time of sales issue.I dont believe this is possible currently. I have seen users design custom programs to reclassify the entries "after the fact".
Hope this helps,
Nat. -
GL account wrongly maintained as cost element
Hi,
One GL account which would allow to post WIP value is wrongly assigned as Cost Element and during settlement through KO88 vlaue is not being allowed to post due to cost element gl "G/L account 711005 cannot be created as a cost element". Even after removing cost element category from table CSKB it is still not allow to post. There is no balance exist in GL account and debit and credit figure is equal. This GL account is very vital and we have to post this GL account through settlement without assigining new gl account against this WIP.
Kindly need any suggestion..
Best Regards,
Samrat RoyHi Samrat,
As per my understanding you would like to delete the cost element for the WIP GL Account. and you said that the debits and credits for this GL Account are same. If there is atransaction data exists, you could not able to delete the cost element.
for this first you should delete the transaction data. i.e., need to delete the all the CO documents for that cost element. for this there is a program to delete the CO documents i.e., RKACOR20. once you delete the CO documents, then you can able to delete the cost element for the specified GL Account. then you can run the WIP without interruption.
Thanks & Regards,
S Vasu -
Difference between type of Secondary Cost Element Category?
Hi,
I checked the system, and during the secondary cost element (CE) creation, I can select some of the CE category as follows:
21 Internal settlement
31 Order/project results analysis
41 Overheads
42 Assessment
43 Internal activity allocation
50 Project-related incoming orders: Sales
51 Project-related incoming orders: Other
52 Project-related incoming orders: Costs
61 Earned value
My question, what kind of report that I can read entries with these kind of CE?
Reason: I want to check what has been posted to these secondary CE.
Or
Could anyone explain the use of above-mentioned CE category in brief?
Thanks.Cost element that is used to allocate costs for internal activities.
Most often used categories are
21 Internal settlement
(When ever an order is settled e.g internal order settling to cost center through this type of cost elements)
31 Order/project results analysis
(WIP in production orders are calculated and posted using this category)
41 Overheads
(Used in costing sheet to do an overhead allocation)
42 Assessment
(whenever cost is allocated between cost centers through allocation method - Assessment)
43 Internal activity allocation
(found in production orders when a routing activity is confimed the charge goes to the production order through this cost element) -
Secondary cost element report to show the balance of cost elemnets in OKG4
Hi
I have assinged two CE ex: 934 and 935 in OKG4 and included in Cost component structruee (is it required or not?)
created Production order and did GI and GR andf WIP.
WIP posted against 934 and 935 that i can see from cost analysis.
when i try to execute the reort S_SL0_21000007 with CE 934 and 935 icouldnot able to see the details.
Can you please help me from where i can see the postings for CE's (Secondary)
in cost analysis against only these two line items getting message Without origin
Please help.
Thanks,
SudhaPl try running GRR3 > Expand library 6O1 > Report 6OAB-001 Orders: Accruals. It will show you the postings in these cost elements. I am not aware of a transaction that calls this report directly.
Regards
Subodh -
Consumption accounts not created as cost elements - Implications
Hi
There are following GL accounts as an Expense GL accounts:
Cost of Raw Material Consumption
Cost of Finished Goods Manufactured
Cost of Finished Goods Sold
Change in Stock WIP.
I have not created them as cost elements since its asking me cost center when i do any PGI or issue to sub contract stock, etc.
So i wanted to know the implications on CO-PA if i do not create cost element. I believe that value will flow to CO-PA on the basis of material code.
Further my doubt is, if i do not create it as cost element, how it will impact my cost center reports and product costing.
Please help. I am confused very much.
Edited by: Meenu_ND on Aug 4, 2011 7:55 PMHi Meenu
cogs - can not be created as cost elements- GBB-VAX- COSTING BASED COPA- MTS
Can be created as cost element -GBB-VAY- COSTING BASED COPA- MTO
always as a cost element GBB-VAY- Accounting based copa
Thanks
ram -
Cost Elements not to be created
< MODERATOR: Message locked. Please post this message in the [Controlling forum|SAP ERP Financials - Controlling;. >
Hi All,
Can you please let us know, which type of P&L accounts should not be created as Cost Elements in Controlling . . .
We have list of such accounts which are not to be created as Cost Elements. Pl let us if the list is correct or not.
Cost Elements should not be created for the following.
1 Change in work in process WIP
2. Cost element for cost of goods sold transactions. (P&L Accounts maintained in OBYC > GBB > General Modification VAX)
3. Production order variances. (P&L Accounts maintained in OBYC > PRD > General Modification PRF)
4. Do not create any cost elements for financial and tax expenses if you want your CO-PA structure to stop at earnings before interest and taxes
5. Price Difference account should not be made as cost element.
Please explain for situation where COPA is implemented and where COPA is not implemented . . .
Any guidence in this regard will be of grate help . . .
Regards,
Ravi KumarHi,
Your list is not viable.
See, cost element only can be made for P&L item.
U can't make cost element for B/S item.
For P/L item also , u need to understand company's policy and requirement.
In your list
change in WIP is a B/s item so it is not a cost element item.
O ther Gl like cost of goods sold , generaly no company follow this GL as such head is a part of costing sheet reporting .
U need to asssigne GL which is related with that head in costing sheet.
Any way your gl like price difference, Prod order diff etc must have cost element . other wise U will get fake report on Controling.
Regards,
Pari -
Cost Elements in OKG2 (Result Analysis Version)
Dear All,
Can we maintain a Single Cost Element or Can we maintain Different Cost Elements for the Different purpose. What is the necessary we have to maintain the Cost Elements & At what level it picks cost. Can any body share some inputs on ths.
RegardsHi Raj,
If you check the settings for RA version 0 for CO area 0001 you will find that a single cost element is maintained.
Based on your requirement you may also define different cost elements for different reasons...
eg: You want to track Imminent Losses separately... then you can maintain a different cost element for calculating and posting imminent losses similarly you may want to capture Rev. in Excess of Billing in a separate cost element.
You can create separate cost elements for
Capitalized costs, Reserves for unrealized costs, Reserves for costs of complaints, Reserves for imminent loss, Work in process.
As such based on the requirement you may decide to have a same or different cost elements maintained in here.
When you execute RA (WIP calculation) system will calculate the values and will make a posting to the cost elements maintained in OKG2.
Also you need to maintain Line Id for the cost elements you have maintained here in OKG5.
Regards,
Sameer -
Product costing - cost elements not to be created
Hi
Can any one suggest on the list of G/L accounts for which cost elements not be created in CO in terms of product costing?
thanks
Moderator: Please, search before postinghi,
Cost elements need to be created for those you want assign in your cost component structure.
Secondary cost elements for over heads material, Production with category - 41,
Cost elements for WIP calculation (All costs, Material costs)- 31 category
Cost elements for RA.
Primary cost elements are some how need to be created for the P/L accounts.
secondary cost elements are which are used inturn used for production process like over heads etc.
Why you are worried about GLs & cost elements not to be created.
Which are require you create them.
Edited by: santosh kumar on Feb 6, 2012 4:47 AM -
Activity Types and Allocation Cost Element
Hi
What are the impact of having same Allocation Cost Element for different Activity Types. Is there any where we use this condition. SAP allows to have same allocation Cost Elements to different Activity Types, but i did not understand where we can utilizes this feature.
Thanks
SivaramHi Sivaram,
in WIP customizing OKG5 you can assign specific cost center/activitity type combinations to different line-IDs, even though the same cost element is used. By this you can e.g. differentiate the value flow of one cost element in 2: one for capitalization, the other for non-capitalization.
Personally I would not recommend to use this and stick to the rule "one activity type - one cost element" - makes it easier for IT and controlling departments.
Regards
Harald -
Results Analysis cost elements
Hello,
The Results Analysis saves the Results Analysis data under secondary cost elements. These cost elements can be determined thru assignment to Line IDs in the transaction OKG4 (OKGA) u201CUpdate of WIP Calculation and Results Analysisu201D, or they can be determined in the definition of Result Analysis Version (transaction OKG2 or OKG9) in the section u201CCost Elements: Results Analysis Datau201D of the Extended Control.
Could you please tell me when the system saves the Results Analysis data under cost elements specified in OKG4/OKGA and when under cost elements specified in Results Analysis Version in OKG2/OKG9 ? How do you control this?
Best regards,
RobertHi Sarada,
thank you for your reply.
However in Results Analysis Version in OKG2 I see the Technical RA Cost Element only in simplified control (Costs Elements Off). In u201CCosts Elements Onu201D control I see the following Cost Elements for Results Analysis Data:
1. Valuated Actual Costs
2. Calculated Costs
3. Capitalized Profit
4. Calculated Revenue
5. Revenue in Excess of Billing
6. Revenue Surplus
When are these cost elements used?
In my KKBC_KUN report I can see some of these cost elements (1 u2013 4), but with 0 values, whereas WIP and COS/Revenue cost elements assigned to Line IDs have positive valuesu2026
Robert -
Results analysis: any way to exclude certain cost element from calculation?
Hi everyone!
We are implementing Results Analysis for projects. But the client is asking if there is a way to exclude some cost elements of the results analysis calculation. We are using method 07, POC based in the project milestones.
This is why they need this. They say that very often they they have costs higher to what they should be according to the month's billing. So they need to send the corresponding part to a WIP account. But not all the costs. They have internal costs (like the hours of internal resources) and external costs (like materials procurement or external services contracts). They only want to send to WIP the exceeding external costs. But leave all the internal costs in a cost account. So to do this we need to exclude these kind of cost elements (secondary cost elements) from the results analysis calculation. Is there any way to do this? Any ideas?
Thanks in advance!
Regards,
Thalos.Hi,
In OKG4, next to Line ID there is a field where you can set "N" which means not to include. Make this settinng for required cost elements / Line ID's and then test the changes.
Regards
Sreekanth
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