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Is settlement of WIP at Target Cost possible in Product Cost By Order?If No , Pls Give brief Note.

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Question ajoutée par Mohammed Mohammed , Senior SAP Consultant , Abyat Mega Store
Date de publication: 2016/01/23
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par Utilisateur supprimé

No, it is not possible but it can be done inProduct Cost by Period.

In Product Cost by Order, the manufacturing orders themselves are the cost objects. Costs charged to manufacturing orders are usually analyzed and settled by lot. This means that variances can only be analyzed after the entire planned production quantity has been put into inventory.

 

In lot-based cost controlling, the work in process is calculated at actual cost, the work in process is the difference between the debit and credit of the order, but variances are not determined until the order has the status DLV (delivered) or TECO (technically completed). When the order has that status, the system no longer interprets the difference between the debit and the credit as work in process but as a variance.

 

In Product Cost by Period, work in process is calculated at target costs and variances are calculated by period, therefore, there can be both work in process and variances on an object at the same time but In Product Cost by Order, orders never have work in process and variances at the same time.

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