Using Periodic Cost and WIP for Final Delivered Manufacturing Orders

After the last goods receipt into the inventory, the manufacturer compares the actual cost of the order with the standard cost estimate and the preliminary cost estimate for each order item. The difference between the actual costs of the order item and the debit value at goods receipt are the variances that are examined exactly in terms of resources in the variance analysis and are settled in the inventory and CO-PA. The system settles variances in the following ways:

• To Financial Accounting (FI) as a sum

• Separates the variances to variance categories, if a Price Difference Splitting Profile was created in FI Customizing. This reporting feature is then available to the following, as a result of using the table ACDOCA:

  • FI, General Ledger

  • Profit Center in GL

  • Profitability Analysis Margin Analysis

• Separates the variances by variance category to costing-based CO-PA

• After the final confirmation and goods receipt posting the order status is set to Delivered.
• Again calculate the periodic costs and distribute the actual costs for co-products.
• Also work in process is calculated again to post the offsetting entry for work in process in Financial Accounting.