Hi Gurus

I would like to know the details of the WIP costing in terms of Operation Costs. I got the calculation for Material Costs. But in terms of Operation costs, i would like to know how the system calculates Work in Process.

I tried with few simulations, but didnt get the exact formulae behind this one. I can roughly say its Actual Costs - (Completed Quantities * estimated operation costs). But this doesnt seems to be in all cases.

If anyone can help me regarding this, it would be of great help.

Thx & Regards

Rama

Rama,

This a little tricky, but I'll give it a go ...

The way WIP Operation Costs are calculated is dependent on your Shop Floor Control Parameters Costing tab ... Process Hours field. It can be set to Actual Man and Machine Rates or Estimated Operation Rates. Ours is set to Actual Man and Machine Rates, which implies that WIP Operation Costs get calculated by Hours Accounting using Man and Machine time.

There a two reports that you can compare to get an idea as to how the WIP Operation Costs are calculated in your environment ...

- Print Work-in-Process (ticst0450m000)
- Print Production Order Costing Overview (ticst0417m000)

Attached is a document showing an example using one Production Order ...

Mike

Hi Mike

Thanks much for your reply. I got a brief about calculation of WIP now.

Regards

Rama