Cost Object Controlling: WIP, Variances and Settlement

Keep this: job aid

Production order period-end checklist

• Sequence: overhead → WIP → variances → settlement. Read each log before the next step.
• Open orders (REL, PDLV): balance = WIP at actual cost. Finished (DLV, TECO): balance = variance.
• WIP needs a results analysis key; calculation stores it, settlement posts it to FI.
• WIP posting: debit unfinished goods inventory, credit change in WIP; reversed when the order finishes.
• Target cost version 0 = total variance (settled). Versions 1-3 are analysis only.
• Categories: input price, input quantity, resource-usage, remaining input, lot size, output price, mixed-price, remaining, scrap.
• No variance key, no variances. Check it on orders with obvious overruns.
• Variance posting: debit price differences, credit finished goods inventory change; split by category if configured.
• Evidence: zero balance on settled finished orders; G/L WIP account = WIP list; price differences = settled variances.