Work in Process (WIP) and Result Analysis (RA) Key

Work in Process: The WIP is the unfinished products whose costs are calculated by the difference between the actual costs charged to an order and the actual costs credited to the order or by evaluating the yield confirmed to date for each milestone or reporting point, less the relevant scrap. In short work in process is the difference between the debit and credit of an order that has not been fully delivered. WIP evaluates the unfinished product.

Result Analysis Key: The RA key is the default value for each order type and plant. It is then added to the order master record when an order of a particular order type is created.Each order for which work in process (WIP) has to be created must have a RA key. The presence of a RA key in the order ensures that the order is included in WIP calculation during period-end closing. This Result analysis key will be used in Work in Process.

T-code KKAX is used for individual WIP and T-code KKAO is used for collective order processing. The system debits the WIP account and credits Inventory Change account. This entire WIP is reversed and a new entry is passed the following month. When the order is fully delivered no additional WIP entries are passed.

See Here List of all SAP Transaction Code

Example

In the first two periods, work in process is calculated and passed on to FI and EC-PCA during settlement as a stock change.

In the third period, the last goods receipt is entered for the order. The work in process created previously is cancelled.

Work in Process

The RA Key shall be entered in the production order, under the control tab. This can be defaulted through order type.

Configuration Transactions:

OKG1 — Create Results Analysis Key
OKG2 — Results Analysis Version
OKG9 — Results Analysis Version
OKGC – OKGD — Valuation Methods
IMG SPRO — Define Line IDs
OKGB — Define Assignment Mapping by incoming charges by cost element to line IDs
OKG5 — Define Assignment Mapping by incoming charges by cost element to line IDs
OKG4 — Define Update
OKG6 — Define Number Ranges

Read More About SAP PS (Project Systems)