WIP Settlement to CO-PA

Dear experts,
I use sales order item to carry cost and revenue (account assignment E/B) in non-valuated mode. At period end closing, I conduct result analysis to calculate revenue, COGS and WIP and the result is correct. The result analysis is based on revenue and if billing to customer, all occured cost will be regarded as COGS, or if not, as WIP.
But when I settle SDI to CO-PA, if the SDI has revenue and COGS, the settlement is correct. But if RA result is WIP, only one FI document is generated but no CO-PA document.
The business requirement is that for WIP, the cost will be settled to a cost value field and the same amount but opposite value will be settled to a revenue value field. My question is whether standard result analysis + settlement function won't settle WIP to CO-PA as I planned. If no, do I have alternative way to realize my aim?
Thanks so much!
Alan Huang

Hi,
SAP best practice is settle WIP to FI and PCA not COPA.
that is why we never create WIP P&L GL account as a cost element.
Thanks,
Rau

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WIP SETTLEMENT

I am trying to run WIP settlement through KKAO and CO88 system creates document with document type "SA". I want to change the document type. Please confirm where i have change the customization?
Regards

Navigation:
For the product cost by period:
IMG-controlling- product cost controlling-cost object controlling-product cost by period-product cost collectors-check order types- select your order type to check for the settlement profile.
IMG-controlling- product cost controlling-cost object controlling-product cost by period-product cost collectors-period end closing-settlement-create settlement profile-select your settlement profile and change the document type here.

Error message in WIP settlement

Hi,
when i do the WIP settlement against sales order, am getting the error message that Settlement structure E1, assignment 210:No value field for quantity billed
kindly clarify
Regads,
Muthu

am closing this issue no answer

WIP&Settlement Process order

Hi,
We calculate WIP weekly basis and WIP used to credited to a Balance sheet acct and DR to a P&L acct (which is generally NOT a Cost Element )
Here our Doubt,
WIP was calculating irrespective of Settlement that is we used to see the Doucument (DR and CR ).and can be verified to FS10N,but now some thing went wrong (I checked OKGA and OKG8 they have proper BS and P&L accts) and after calculating WIP the documents are not posted and FS10N shows nothing for that BS and P&L acct.
1)Can we calculate WIP without settling order (DLV or TECO) and get FI documnet posted ? which we used to get I believe,
2) what is wrong with our system where we got FI documnets for WIP previously and not getting Now even though we have same BS and P&l accounts in OKG8 ?
your help greatly appreciated,
Regards,
Nikitha

Thank you Suryanaraya,
YES we calculate WIP on weekly Basis, But Financial statement analysis on Monthly Basis,
Your answer is convincing, But My user is adamant (in fact he shows the previous documnets posted for WIP) . so can you clarify, for example I calculated WIP (Lets say ,for this month) 2/11,2/14,2/21,2/28 ;;;;;; and , -$100,-$80,-$60,$40 for my Balance sheet ,Respectively , which shows $0.00 for that Process order as WIP, and we are done totally at the month end ,so you mean to say I will get 4 documents on Month end (Feb 28) as Document Date 2/11,2/14,2/21,2/28 and Posting Date 2/28 for all 4 when I run Settlement?
OR can I do weekly WIP and Settle order ? to see WIP documnets?
Please clarify,
Excuse my ignorance,
Nikitha

WIP settlement does not get reversed ..

Dear Experts,
We have capital projects where we use result analysis and settlement to FI to capitalize costs. We do not use IM and Fixed asset here.
During the periodic process, we run result analysis which calculate WIP, and then settlement. The FI document would be genereated for incremental balance in WBS. At the end when we capitalize the costs, we set 'TECO' to a WBSE, after we run result analysis and settlement. Costs get settled to a balance sheet account correctly and a PL account and WBS got credited. However, the WIP calculated and FI documents previously generated did not get reversed automatically. We will have to run settlement another time to get this WIP reversed. I believe that this reversal should occur at the same time of the first settlement run(correct me if i am wrong).
What did i do wrong?? What are necessary steps that i need to take in getting this issue resolved? Your timely help is appreciated.
Please help!
Monica.

Virendra,
For now, we do not use IM and AA yet, we use WIP to mimick the process if we were to have AuC.
You're correct.Those postings do not hit WBS. So, at the end at TECO status, we settle to an asset GL account. however, i think once we run the settlement 2 things should happen at the same time - costs are settled to a GL account and credit WBS; the other is FI documents should get reversed. Currently, only the first step occurs. We need to run settlement another time to get the FI documents(which do not hit WBS) reversed.
Do you know why it is so??
Monica.

Negative WIP settlement - KD256 error!!!!

When I have negative WIP on a production order & I try to WIP it using KKAX & then settle it using KO88, it says there is no accrual to settle - KD256 error.
I have serached a lot of places but I do not find answer to this question in any of the posts. Would anybody know?
Thanks
Morgan

Hi,
Please check OSS Note:365075
Note Language: English Version: 3 Validity: Valid Since 02.02.2001
Summary
Symptom
You are executing the WIP calculation for actual costs for an order.
Instead of work in process, the WIP calculation calculates reserves for
unrealized costs (results analysis categories RFKA, RFKN or RFKW) since the
balance is negative in the order for which the WIP is calculated. The
credit of the order (for example due to goods receipt into stock) is thus
higher than the debit (for example by usage from stock). You do not want
the WIP calculation to display reserves. The stock should rather be reduced
correspondingly (negative work in process).
Additional key words
Transactions KKAX, KKAY, KKAS, KKAT, KKAO, KKAQ, KKAV, KKAW, KKA1, KKAI,
program SAPKKA07.
Cause and prerequisites
Solution
o Select the entry for the results analysis key of the order in
Customizing for the valuation methods of the results analysis
(Transaction OKG3).
o Now select the entry for status 'REL'.
o Enter 'B' in the 'Special funct.' field.
o Save.
o If there is an entry for status 'PREL', also select this entry.
o Again, enter 'B' in the 'Special funct.' field.
o Save.
Thanks,
Anusha

WIP-Settled cost

Hi,
For WIP ,can somebody explain when line ID SETC(Settled cost) is used for WIP calculation.
Help wud be highly appreciated,

Hi
What cud be possible errors if i do not maintainb this line id & related cost element.ANyways they wpuld'nt be used for WIP calculation.
Thx & Regards

Accounting entry - WIP, Variance Calculation & Settlement of Production Orders

Hi All,
Please explain the process of WIP calculation, variance and settlement of production orders. At each stage will there be an accounting entry generated?
1. WIP calculation: All production orders for which the status is REL at the month end will be included in WIP calculation. How the amount of WIP is derived and what will be the accounting entry.
2. Variance calculation: Production order needs to have the status TECHO in order to do the variance settlement. Will there be an accounting action and how the amount will be calculated?
3. Settlement of Production Orders: Dr. WIP A/c (Balance Sheet a/c)
                                                    Cr. Volume Variance WIP a/c (P&L Account)
    Is this the correct accounting entry? If yes, please advice how the WIP a/c is showing balance on settlement of production order, how it will get nullified? If no, please advise on the correct process?
Regards

Dear Andy
In product cost by order scenario the WIP or Variance calculation is dependent on order status. If the Order has a status of REL or PDLV, the system will calculate WIP and if the order status is DLV or TECO the system will calculate variance on this order. At the time of calculation of WIP or Variance no accounting entry i generated but when you settle the order at that time FI documents are passed in the books.
Ans1- In product cost by order WIP or variance is calculated based on the actual cost debited to the order and value of GR made to the order. System does calculation by the formula GR value-(GI value+Activity value+ Overheads)
Ans2- As I said at the time of calculation no FI entries are passed but at the time of settlement FI entries are generated. The method of calculation is the same as described in Ans1.
Ans3- Entry at WIP settlement WIP (P&L) a/c Dr and WIP Offsetting(B/S a/c) Cr.
          Entry at variance settlement : Variance a/c dr/cr and COGM cr/dr.
          and if there is already a WIP posted for this order then at settlement WIP entry is reversed provided we have calculated WIP again the the month of settlement of variance
Note for Anand: Dear Anand we need to calculate WIP again in the period when the order status is changed to DLV or TECO otherwise system will not pass reversal entry of WIP. Kindly test it in your IDES and let me know if you find something on the contrary.
Regards
Rajneesh Saxena

KO8G open work order settlement

Hi,
I am facing an issue with open work order settlement using KO8G or KO88.
We are on 6.0 and PSM turned and New GL activated with a document splitting on fund mandatory flag turned on.
When open work orders undergo WIP calculation through KKAI, it shows the the calculated amount in the GL account but when we execute KO88 or KO8G to settle this open work order amount to the GL, it gives me the below error
GLT2201 "Balancing field "Fund" in line item 001 not filled"
On debugging the KO88, its seen that the field fund does not flow in from the work order.
This means that both my P&L accounts and my balance sheet accounts that offset the WIP posting does not have the fund field (which is a mandatory field for posting any document in the system).
Has anyone come across such a situation?
Any help would be appreciated.
Thanks,
Pradeep
Edited by: Pradeep Giri on May 30, 2009 4:07 AM

Hey Vanessa,
Sorry i have been really busy with work off late. I just got a moment and wanted to thank you for the help.
I found a solution for it, we had FMDERIVE default the fund on the accounts used in WIP settlement as they are dedicated for those process.
The cost is picked from the order and deposited on the P&L account which is now attached to the fund and this is further transferred to the balance sheet account with the fund information.
Problem solved.
Do you see any other implications on this?
Thanks again.
Pradeep

Open Work Order settlement - KO8G or KO88

Hi,
I am facing an issue with open work order settlement using KO8G or KO88.
We are on 6.0 and PSM turned and New GL activated with a document splitting on fund mandatory flag turned on.
When open work orders undergo WIP calculation through KKAI, it shows the the calculated amount in the GL account but when we execute KO88 or KO8G to settle this open work order amount to the GL, it gives me the below error
GLT2201 "Balancing field "Fund" in line item 001 not filled"
On debugging the KO88, its seen that the field fund does not flow in from the work order.
This means that both my P&L accounts and my balance sheet accounts that offset the WIP posting does not have the fund field (which is a mandatory field for posting any document in the system).
Has anyone come across such a situation?
Any help would be appreciated.
Thanks,
Pradeep

Ashok,
Thanks for the reply.
We have a user exit to populate the order during its creation. this means the fund field is already residing on the order. so during settlement process, closed orders dont have a problem but when open orders are subject to settlement i.e WIP settlement, the cost on the order is not transferred to the GL account because of the fund missing as our financial statements should be balances by fund.
Do you think an user exit can suffice this ? have you ever tried or come across such a scenario.
Thanks
Pradeep

CORM --- There is still WIP for order u201Cu2013 error

Dear SAP Experts
When doing CORM (close process order), the error message u201CThere is still WIP for order u201Cu2013 WIP in financial accounting is still to be cleared.
For this process order, the WIP is calculated in period 11 2009,The order was final confirmed and final settlement to COPA was done on feb 2010, So we tried to reverse the settlement , the settlement on feb 2010 is getting reversed ,but the WIP in period is not reversing in KO88
How to reverse the WIP posted in period 11 2009 ,now the period is closed for year 2009. now the order status was in CNF . Please suggest a solution for this .
Thaanks
Partha

HI,
WIP-posting for a given period is reversed when the settlement for this period is reversed.
As this is in an already closed fiscal year there is no way to do so as this will change accounting figures for closed fiscal years.
What causes the "WIP is not zero for order..." message? This needs to be solved and I doubt that the reversal of the old WIP settlement will help you on this.
Best regards, Christian

Work order settlement issue

Hi
I am not an expert in Work orders and appreciate your input.
A work order has been settled to a Sales order ( I can't understand the logic behind settling to a Sales Order). The Profit centre assigned to the sales order is wrong. I.e. they need it to be the same as that in the work order.
1) Is it possible to reverse the settlement and
2) change the profit centre in the Sales order
3) Change the settlement rule of the work order
The user informed the reason to settle the work order is just merely to close the work order. Is it mandatory to settle the work order in order to close. If so could you please explain the logic behind the requirement?
Thanks & Regards
Nadini

Hey Vanessa,
Sorry i have been really busy with work off late. I just got a moment and wanted to thank you for the help.
I found a solution for it, we had FMDERIVE default the fund on the accounts used in WIP settlement as they are dedicated for those process.
The cost is picked from the order and deposited on the P&L account which is now attached to the fund and this is further transferred to the balance sheet account with the fund information.
Problem solved.
Do you see any other implications on this?
Thanks again.
Pradeep

How to implement the WIP in production planning module?

Hi Gurus,
Good afternoon! We are planning to Implement the WIP in Production Planning Module. Current set-up, we create production order and confirmed for all process in production transaction especially the consumption of raw materials and Goods receipt of FG from one Production order. We have two activity in production transaction. But we would like to separate the process per activity. Can we ask on how to separate the transaction or implementing the WIP? To create production order as semi-finished goods and one production order for final finished goods. We would like to ask for your expertise and advise on how to implement WIP in SAP PP that there is no duplication of manufacturing FG cost.
We would like also to know all FI entries per transaction to make sure there is no double entries in manufacturing cost of FG.
thank you,
weldin angelo

Hello Angelo,
Please refer this thread for your requirement
Wip calculation in production Order
WIP Settlement
I hope this information helpful to you
Regards
Umesh Mali

WIP REVERSE NOT HAPPING IN THE REFUBISHMNET ORDER

Dear GUYS,
I am facing one problem
At month end when the Refrubishment order is incomplete, the order is to be settled to WIP
when the order becomes DLV in the next month
it settles like normal order of refurbishment at material
But the WIP is not reversing can you explain me why
See the process is at month end if order is incomplete
Tcode KKA1 save the cost to wip
Settle the order by ko88
then next month do teco & DLV of the order
Again Do the KO88
Order gets settled but WIP Not Reverses
Regards
chandrashekhar Ingole

hello
Please give me your email so that I can send you details
Regards
chandrashekhar Ingole

RA Category for Sales Order Actual Settlement

Hi,
During production order settlement for WIP we run in every month end. Generally in tcode OKG8 (Posting Rule in WIP calculation and Result Analysis) we use RA category WIPR(Work In Process with Requirement to Capitalize) which is used production order settlement for WIP. We have done production order settlement and successfully value posted to WIP settlement gl account because in OKG8 WIPR is maintained against P&L and B&S account. After that we have done Result Analysis for Sales Order through KKA3. Value has posted to various objects under Result /analysis. Now we need to run Actual Settlement for Sales Order. In case of Sales Order Costing what should be its RA catergory for Actual Settlment : Sales Order settlment which is run through VA88.
Best Regards,
Samrat Roy

Dear Waman,
In OKG8 posting rule WIP calculation against RA category is maintained as WIPR with P&L and BS gl account. Uner Result Analysis valuation method against RA Key for Sales Order is maintained as PREL, REL, DLV, FNBL and TECO. Production order settlement has done and value has posted to WIP gl account and Quantiy has issued for delivery and billing. After the Sale billing I have done KKA3 which is Result Analysis for Sales Order. Value has posted to Sales order wip, Actual Revenue, Actual Cost, Cost of Sale, Revenu affecting net income, Planned revenue, planned cost, Planned profit and loss value shows. After that I have run VA88 and sales order wip value has posted to wip gl accounts which is set in OKG8 both P&L and BS gl account which same gl is used for production order settlment also and I created Sales Order settlement rule which is receiver in GL accounts. That GL is external settlement GL account. That external settlment receiver gl is same as sales order settlment profile's allocation structure GL. So during final sales order settlment same gl is debited and credited of calculated profit.
But I have some doubts which I requires as per business. I need Revenue Surplus(POCS), Reserve Unrealized Cost(RUCR), Revenue in Excess Billing(POCI) and variance from Result Analysis(VARR). I wanted to set this RA category in OKG8 but system does not allow me which says alrady WIPR is maintaied and value posted to result analysis. So I need to deactivate first then new RA key can be introduced..
Also I would ask you after production order settlement for wip, shall I run wip for Sales order and Sales Order settlement. or I need to to pas customer delivery and final billing. After billing I need to run WIP on sales order and sales order settlement. Basically I will run two times WIP which are production order and sales order. Our business sceanrio consists of one sales order with 29 prouction and its corresponding 29 wip which will be finally settled to Sales order external settlment gl account.
Best Regards,
Samrat roy

WIP Settlement to CO-PA

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