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Re: WIP Calculation for status DEL/TECO

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Hi Ismail,

 

As per your query if your order status is DLV/TECO, system won’t calculates WIP, it will calculates the variance.

 

Assume that if your order status is REL/PCNF in the current month, then while doing the month end activities, it will calculates WIP, the entry will be.

 

WIP B/S dr

To Change in WIP Cr

 

Now in this situation in the next month full delivery has been done, then the above entry will reverse like.

 

WIP B/S Cr

To Change in WIP Dr

COGM Cr

To production variance Dr.

 

Both reversal entries for WIP and variance will post in the next month settlement and it is the standard behavior.

 

Regards,

Ravi


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