Display Work in Process - Orders, Display Work in Process - Product Cost Collectors
Application component: Cost Object Controlling
App type: SAP GUI
Description:  The WIP calculation function valuates the unfinished products (work in process). In the Product Cost by Order component, the work in process is valuated at actual cost. Work in process is the difference between the debit and credit of an order that has not been fully delivered. You can calculate WIP at actual costs for the following objects: Production orders Process orders 
Key features:  Calculation of Work in Process This method determines the work in process for each production order by calculating the difference between the actual costs incurred and the actual costs settled (that is, the difference between the debits for goods issues, internal activity allocations, external activities, and overhead on the one hand, and the credits for goods receipts on the other). Once the last part of the order lot has been delivered to stock, any remaining work in process must be canceled so that the order costs can properly be settled to stock. The status of the order determines whether WIP calculation creates or cancels the work in process. If the order has the status REL (released), the system can calculate work in process. Once the order receives the status DLV (Delivered) or TECO (Technically completed), the work in process calculated in a previous period is canceled. The cost estimate used to valuate the work in process may contain costs that are not relevant for inventory valuation, such as sales and administration costs. In a product cost estimate with a quantity structure, these costs are shown in a separate cost component view. Costs that are not relevant to inventory valuation are not used for the valuation of the work in process. In joint production, the work in process is shown separately for each co-product at the level of the order item.  Calculation of Reserves for Unrealized Costs When the system calculates the WIP, it may create reserves for unrealized costs for certain orders. This happens when the actual cost incurred to date for the manufacturing order is less than the credit posting at the time of the goods receipt. The system creates these reserves because higher costs than the actual costs to date are expected on the basis of the information in the standard cost estimate for the material that was used for material valuation. When you settle, reserves for unrealized costs usually result in the system debiting the expense account (from reserves) in the income statement and crediting the reserves for unrealized costs in the balance sheet.  Update of Work in Process The work in process is updated to the product cost collector or manufacturing order under secondary cost elements of cost element type 31. Secondary cost elements of cost element type 31 are results analysis cost elements. The system can update the work in process and reserves not only as a sum but also split into fixed and variable costs. A requirement for this function is that the price control indicator in the material’s master record is set to S (standard price) and that a current standard cost estimate for the material exists.  Work in Process in the Information System When the WIP is calculated, the system sets the status RESA (Results analysis carried out). The system uses this status to select the orders for which work in process has been calculated. This data is included in summarization. You can create summarization hierarchies in the information system to be able to see cumulative variances by plant or controlling area, for example.  Work in Process in Multiple Valuation Views You can calculate work in process at actual costs in up to three valuation views. This means that it is possible to include transfer prices with work in process at actual costs. You control this in Customizing for Product Cost by Order under Period-End Closing  Work in Process  Define Results Analysis Versions.  Improving Performance You can use parallel processing to reduce the runtime of the WIP calculation process. If you perform WIP calculation outside the Schedule Manager, enter a server group for background processing. If you perform WIP calculation using the Schedule Manager, set the Parallel processing indicator in the selection screen of the program when you create the job variant. An entry field then appears in which you enter the server group.  Schedule Manager: Multilevel Worklist You can view and edit the objects with errors that were processed with the individual functions. You use the multilevel worklist for this purpose. The multilevel worklist enables you to edit the faulty objects of an individual processing step (that is, a single function) or of an entire processing step sequence. A prerequisite for using the multilevel worklist is that you are using the Schedule Manager in conjunction with a flow definition. See: "Integration" in this section.  Constraints Work in process cannot be calculated separately by operation or phase.  Transfer Prices: Work in Process in Multiple Valuation Views If you are using transfer prices, you can update work in process at actual costs in multiple valuation views.  User-Defined Error Management You can influence the messages output in the log of WIP calculation by using user-defined error management. See: "Integration" in this section.