WIP (Work In Progress) Calculation in Process Industry

Queries :
What is the significance of Yield in PP - PI
How can we co-relate it with the WIP Calculation
Fact :
Generally when the Order is having Status CNF (Confirmed) & TECO (Technically Completed), they are not considered for the WIP Calculation.
Scenario :
I have came across numerous Process Orders which shows the Yield Value in Negative, why is so, I am not able to understand. More over the Orders which are having status CNF and TECO they are still been considered for the WIP Calculation. Is this a kind of Bug or we need to look into the customization. Please Advice.
Thanks in Advance for the Information Provided.

Hi
Are you refering the yield in COR6N?
It is nothing but the production qty to be confirmed.
REg your otherquestion of TECO orders being considered for WIP calculation :
as such there is no such setting in PP .
You have to discuss with your FI/CO collegue for clarification.
Regards
YMREDDY

Similar Messages

Difference between WIP (work in progress) and Semi finished goods

what is the difference between WIP (work in progress) and Semi finished goods
and how to handle their valuation seperately in SAP.
pls help with some specific important inform on both   WIP   and semi f

Hello Sanjeev,
The difference between SFG and WIP is that ,
1 ) Valuation Class For SFG starts 7***   but WIP material stock starts with 3***
2 ) Stock / inventory of SFG can be seen at point of time but WIP is an Order item
3 ) We can find the stock of SFG at any point of time say it is having specific storage location But WIP is calculated from
    Order for which items are drawn .
4 ) Example You have to manufacture Product AAA which contains SFG1 , 2 , 3 which is made up of some component items
    once SFG 's made the inventory is updated during GR but the components lying in the shop floor required to complete the order
   so we want to know at any point of time how many these materials are lying and the same was issued against Order
   reservation to finish the balance Order Quantity is called WIP. You have confirmed only say 80 Pcs of FERT out of 100 Pcs
   remaining 20 Pcs needs to be confirmed and is being manufactured in the shop floor and the same is lying as WIP .
Material Consumption to Production Order:
In FI:
ROH consumption Account       Dr (PROFIT & LOSS ACCOUNT)
To ROH Inventory Account       Cr (BALANCE SHEET)
Same in the case with HALB
In CO: Cost of Material is
In CO: Cost of Material is debited to Production Order
   For WIP :
Calculation of WIP In FI:
      WIP Account                           Dr. (BALANCE SHEET)
To Change in WIP Account      Cr (PROFIT & LOSS ACCOUNT)
If the Order is completed:
In FI:
Change in WIP Account           Dr (PROFIT & LOSS ACCOUNT)
To WIP Account
Pl come back if you have any doubt,
Regards,
Jaya Vimal
Edited by: jaya vimal on Aug 9, 2010 2:10 PM

Calculating WIP (Work in Progress) for Sales

How do I run through the standard process of creating sales order with the Bought-in Item category (YBAB), do my delivery based on the sales order order, invoice for quantity delivered (VF01) and at the same time be able to calculate Work in Progress (WIP). Being able to calculate WIP is the major issue here as the client sees it as a very big issue. if there are other method through which the same process can be handled, be kind enough to let me know.
adopted some other methods initially but had issues with them towards the end.
thanks

I think you should ask in FICO forum.

Calculation Work in Progress error

Hi Experts,
Basically I am PP consultant. Learning product costing.
Can anybody please solve following error.
While running T-code KKAX for Calculate Work in Progress I am facing this error.
There are values for cost element 50000000 that are not assigned to any line ID
Diagnosis
Not all values for the cost element are assigned to a line ID.
Procedure
Assign the cost element to a line ID. If you don't want to include the cost element in results analysis, assign it to a line ID of category N.
You can access a detailed list of unassigned cost elements as follows: Start results analysis in the individual processing mode (transaction KKA1, KKA2, or KKA3). Select the field Full log. Execute the function. On the next screen, choose Logs -> Parameter List in the menu. A list is generated. The unassigned values are shown at the end of the list.
If cost element "+++++++++" was shown in the message, this is because in the assignment of costs and revenues to line IDs, you have not used a cost element other than the full masking "+++++++++". In this case a presummarization eliminates the information on the cost element.

This is due to non assignment or masking of cost elements in customizing of WIP for line IDs ( transaction code: OKGB). also check cost component structure.
take help from any controlling consultant..
regards,
Ramesh B

Error in Project Progress Config and process steps

Hi experts,
I am implementing PS for Asset procurement, in this i will procure material against material component which is added in Internal activity. I am using scheduling also. Now My client requirement is that he want project progress report on cost basic.
I am using CJ40, CJ30 and CJ32.
IN IMG i have configured like given below
1. I have created Progress version 100
    EV base - Cost Plan ( active Proejct, Annual Value)
    POC weighting - Weight
    Planning type - Basic dates
    Early/Late - Earliest Possible
    Actual method and Ref plan method tick.
2. Measurement method -
   for cost based report i have selected - Cost proportional
3. Default value for measuremnt method -
    100 -WBS element - Plan - Cost proportional
    100 - WBS element - Actual - Cost proportional
    100 - Acitvity ( int)- Actual - Cost proportional
    100 - Acitvity ( int)- Actual - Cost proportional
I have put this in CJ20N. I followed following steps
1. CNE1
2. CNE5
but it is showing 0 value in all tabs such as Aggregate planned percentage of completion, Non-aggregated planned percentage of completion
can anyone tell me the total process to get this report perfectly. It is very urgent need so please help me guys.
Thanks,

Hi,
1) in wbs goto progress tab for enter version plan ,give ur method and actual also give your method poc weightage give 1
2) in activity go to progress tab enter your version, give your method for plan and actual give the work measurement method and weightage give 1
3) now confirm the activities if partial confirmation enter the degree of processing (%).
4) goto progress calculation screen and give your project number and select with hierachy and with orders. enter the month and year.
5) excute,
6) goto the report and check the report.
if still not working send screen shot of the report.
Thanking you
Vengaiah Chowdary

Migration of Cost Transaction Work In Progress Values into the Projects

Hi,
Can anyone kindly help me out in the approach to adopt for the Open Work in progress value migration into the projects applications of Oracle Applications.
Thanks in Advance,
Lavanya
Edited by: Lavan ya on Nov 15, 2009 12:54 AM

Hi
The migration strategy depends on the way the company will for forward with its accounting procedure.
I assume the project is incurring costs as work occurs, and supplier invoices are entered. At the end of the period the company need to move the value of costs which has not matched to the period revenue into a GL account representing the Work in Progress. If the model is calculating the figures on the marginal period, and not accumulated ITD amount, then your approach may be valid.
The question regarding converting the project invoices (sent to customer) also depends on the method you accrue revenue. If Revenue and Invoice is always taken on the same time for the same value, you don't need to maintain UBR&UER balances. However, if those are generated separately, you might need to convert into Projects also the old revenue and old invoiced amount per project.
Converting historic data also depends on the requirements for future reporting. If you only convert the balance of WIP, you might be missing information for reporting actual cost versus cost budgets, etc.
Dina

Auto GR/IR for Semi Finished goods in Work in Progress stage.

Dear All,
What are account postings going to happen while issuing semi finished goods from from one process to other process by using Auto GR/IR.
Regards,
Venkat.

Dear sapper2000,
Work in progress:If my understanding is correct,then any unfinished product can be said as work in progress.
Work in process or progress are partially completed goods, parts, or subassemblies that are no longer part of the raw
materials inventory and not yet part of the finished products inventory.Check this link to explore more on this topic,
http://wiki.sdn.sap.com/wiki/display/ERPFI/UnderstandingResultsAnalysisforWIP
Regards
Mangalraj.S

How to treat the accounting entries for the Process industry?

Hi SAP Gurus,
I am working with the Process industry client. Here one raw material goes with chain of process. In one plant half of the process will carried out and the rest of the half process would be carried in another plant. the entire accounting entry would be as follow.
Plat A
While Purchasing the RAW material the account entries are
Raw material Inventory A a/c     Dr
     To GR/IR a/c                Cr
While issuing material to process order
Consumption a/c      Dr
     To Raw material A inventory   A/c      Cr
While the FG receipt into the stock
FG B inventory      a/c     Dr
     To COGM   a/c      Cr
Stock Transfer from Plant A to Plant B
Goods issue from Plant A
Goods in Transit   a/c        Dr
To FG B inventory      a/c     Cr
Plant B
Goods Receipt at Plant B
FG B inventory a/c      Dr
     To Goods in Transit a/c      Cr
While issuing Goods to process order
Consumption a/c      Dr
     To FG B inventory a/c     Cr
While Final FG receipt
FG C inventory a/c Dr
     To COGM a/c          Cr
In this case mine consumption account gets hitted two times. One at Plant A and another at Plant B. So in my P&L account the consumption will be in two times. In this case how should i treat the accounting entry??
Advance thanks for the help.
Regards,
Deva

Hi Ravi,
I have discussed with my user. The business requirement is they want the plant wise Balancesheet and Financial statement. If i do the stock transfer from one plant to another it is very difficult for me to get the balance sheet. What we are planning is while transfering one plant to another the FG invertory credit agaist Intra transfer account (One P&L account) then in the receiving end the intra transfer a/c debit to FG inventory so that i can get the trial balance.
I will get back to you once i get the solution for this. Let me know if you have some idea on this.
Thank you.
Deva.

Process Industry- How to map the Scenario?

Dear Gurus,
The is a Process Industry, Chemical Manufacturing Unit, which does the following sequence of Operation to get the Semi finished material.
1) Acid, TC, and Catalyst are 3 Raw materials
2) Acid, TC and catalyst after being put into reactors, they Undergo 2 Phases. Crude and Distillation
At crude phase, Crude is Produced. But they dont want to do confirmation of crude.
At Distillation stage, Main Fraction(MF), a semi-finsihed material is Produced
But at the distillation Phase, 2 more, Products are produced in conjugation to MF.
These 2 Products are Lower Fraction(LF) and Residue.
When these LF and Residue are produced, they again put into reactor and some qty of TC is added to achieve MF which again produces some portion of LF and Residue. And these cycle goes on.
They keep these process continuing.
In short: MF is derived in 2 ways
Acid+TC+ Catalyst=MF
LF+Residue+TC=MF
Please help me in mapping below Points comprehensively.( They want one Order Type for 2 phases.)
1) How BOM will be made of LF and residue if I treat them as Co-Product??? Or some other technique in SAP can map it?
2) What is the Step by step Costing configuration of Co-Products. I searched lot but unable to find the proper settlement rule of Co-Products.
Thanks
Shailesh Mishra

Dear Rahul,
As I understand that Co-Products cannot be subjected to movt type 261 and same i have tested in system. So, concept of Co-Product is not applicable here either with Recursive BOM application.
The solution which we have found here is that Client will make one of BOM of Acid+TC+ Catalyst
which will give MF. The concept of Reverse Calculation will be applied. Daily product of LF and Residue will be extrapolated at the Month end. And the LF and residue Quantity will be tracked not from system. Only during month end, LF and Residue Physical Inventory will be taken and it will be treated as Raw materials So, in the Running Process Order 262 will be done of So-called LF and residue. Stock Up(+)
And same Qty of LF and residue will be subjected to 261(Stock Down-) in the next month New Order in form of Raw material.
So cycle of 261 and 262 of LF and residue in form of Raw materials will be Perpetual and settlement of orders will also be sacrosanct.
Best regards
Shailesh

Not Publishing "Work in Progress" Files

Hi,
My project contains many "Work in Progress" files that I do not want to publish. I have tagged them with the relevant WIP tag.
I have also defined a default page to display in the publishing wizard. Is this the page that is displayed when the page cannot be found? For some reason, this page is not being displayed. Instead I am getting the very unattractive "page cannot be displayed."
Thanks very much,
DGR

Assuming you did add that tag to your build expression, is it possible that on some occasion they were published before that tag was applied? Publishing does not delete files from the server, you have to do that manually.
The default topic is not what users see when a page is not found. It is the topic that is opened when the help is opened.
See www.grainge.org for RoboHelp and Authoring tips
@petergrainge

Process Industry

Dear All,
I'm New To Process Industry,piz help me what are important thinks I need understand,?
Important TABLES IN process Industry?any study material have in the sense share me.
process flow
thanks for advance

Hi
It is a very generic question please try to do the google you will get lot many threads regarding the process industry.i am attaching some of thread for your reference
Order tables :
AUFK Process order headers
AFKO Order header data PP orders
AFPO Order item
AFVC Order operations
AFVV Quantities/dates/values in the operation
AFVU User fields of the operation
AFFL Work order sequence
AFFH PRT assignment data for the work order(routing)
JSTO Status profile
JEST Object status
AFRU Order completion confirmations
Process Order operation tabel :
PLAS Task list - selection of operations/activities
PLFH Task list - production resources/tools
PLFL Task list - sequences
SAP PPPI Process Industry Master Recipe - SAPs'WORD - We SAP For Your Cause
Production Planning - Process Industries (PP-PI) (SAP Library - Production Planning - Process Industries (PP-PI))
Thanks & Regards
Sandeep Kumar Praharaj

Average Costing in Process Industry

One of the Client requires average Costing in his Process Industry But Oracle doesnt support Average Costing in Proces Industry in R12.1.3 but supports average Costing only in Discreet Manufacturing.Please help or guide some work around immediately so that the Client could be convinced to go for Standard Costing and than for closing stock valuation some work around could be done.
Thanks & Regards in advance
V K Sharma

Important Things Involved:
O10C --- Control Recepie Destination (Clubbing of recurring PICs)
O12C --- Process Instruction Category (PICs) -- Clubbing of Process Instruction Chars to be displayed
as per requirement on PI Sheet.
O13C --- Process Message Category --- After we have recorded the Enteries in PI sheet, If we need to update some ABAP/ Z table or We need to Trigger some program with those values then mapping for that is done here.
BOM:CS01
Resource:CRC1
Master Receipe:C201
Production Version:C223
PI Characteristics:Ct04/O25C
PP Process Flow:Cr01>Co53>co60/co55/co64/co67-->CO57
SOP:MC84>MC81>mc76>mc75>md63
Demand Management: MD61>MD02>MD04-->Cor1
MRP Run: MD02,MD04

Semi finished goods and work in progress

Dear all,
May I know if semi finished goods also considered as finished and not work in progress, correct?
whether semi finish or finish goods can be in work in progress. correct?
thanks

Dear sapper2000,
Work in progress:If my understanding is correct,then any unfinished product can be said as work in progress.
Work in process or progress are partially completed goods, parts, or subassemblies that are no longer part of the raw
materials inventory and not yet part of the finished products inventory.Check this link to explore more on this topic,
http://wiki.sdn.sap.com/wiki/display/ERPFI/UnderstandingResultsAnalysisforWIP
Regards
Mangalraj.S

Rework process for Customer returns in process Industry.

Hi Gurus,
We are working in a process Industry. The process is here we do
Sales order
MRP run
Process order
Process order confirmation
delivery
billing.
Now the scenario is, once delivery done, customer returns the goods for rework.
To complete this process, how can i go ahead and whether this will reflect in the PP module or not & how can we interrelate the SD with PP in this regard.
Note: we dont have the CS module now
Thanks.
Thyagarajan.
Message was edited by:
thyagarajan krishnamurthy

Hi amith,
for return process you have to follow RE document type and LR for pgr
while coming to excise you should have to do J1IEX without purchase order the the values of excise will be reversed .
it should resolve your issue
bvdv

Pricing in Process industry

Dear All,
In our scenario for Job work in textile processing industry we need to maintain the price (PR00). This price normally maintained is Rs.7.25/mtr and Rs.60/kg, therefore conversion relation is (1mtr = 120 g), hence the average weight required is 120g.
There are two scenarios for example:-
Normally if the average weight is 120 g then the customer is charged by 7.25 / mtr. If the average weight changes then,
1.     Now if the dispatch material is 1mtr =140 g the billing will be on Kg basis which is approx
                Rs.8.40 / Mtr.
2.     Now if the dispatch material is 1mtr = 110 g the billing will be 7.25 /mtr.
How to MAP this in SAP pricing.
RamananPV

Dear PV,
         Create Master dta for the three materials like this.
1.Material 1Average weight 120g
2.Material 2 1mtr=140g
3.Material 3 1mtr=110g
Take sales unit as mtr (M)
Maitain the price for the above materials based on the Unit meter (M) inthe transaction VK11 with the key combination Materail.
According to that if you enter Material 1 in the sales order as 100 mtrs it will pick up the price relating to that from the condition record which is belongs to the Material 1
I hope it will help you
Regards,
Murali.

WIP (Work In Progress) Calculation in Process Industry

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