Comprehensive and Detailed Explanation From SAP S/4HANA Cloud Public Edition, Management Accounting documents:
In Event-Based Production Accounting, Work in Process (WIP) at actual costs is determined in real-time based on specific order statuses. When a production order is in a status that allows for actual cost postings but has not yet been finalized, the system calculates and posts WIP for each business event, such as goods movements or activity confirmations.
The statuses that trigger WIP at actual cost include:
Released (REL): Once an order is fully released, actual costs can be debited to the order, and the system begins real-time WIP calculation.
Partially Released: Similar to fully released orders, this status allows for the initial accumulation of costs that contribute to WIP.
Partially Delivered (PDLV): If goods have been received into stock but the order is not yet final, the system continues to track WIP for the remaining unfinished portion.
In contrast, when an order reaches Delivered (DLV) or Technically Completed (TECO) status, the system automatically clears the remaining WIP and settles any potential production variances.
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