term direct costs production what is
Meaning of direct costs of production. What is it: been completed are posted to a work-in-process.

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Definition direct costs of production

DIRECT COSTS OF PRODUCTION title: direct costs of production (CO-PC) (SAP Library - Glossary)
DIRECT COSTS OF PRODUCTION category: Product Cost Controlling (CO-PC)
DIRECT COSTS OF PRODUCTION explained:

The inventories on the production orders that have not yet been completed are posted to a work-in-process (WIP) account at the end of the period (rather than to a stock change account, as in the period accounting method).

For the completed orders, the SAP System checks if any supplementary account assignment to this account has resulted in amounts that are posted as variances.

When a production order is settled to inventory, any WIP postings that took place at the end of the previous period (see above) are canceled. Then the material is valuated with the moving average price, and the inventory is increased by the accumulated actual costs.

If the price control indicator in the master record of the material to be debited is set to S, the inventory is increased according to the standard price; the difference versus the actual costs is posted to an order variance account. The offsetting posting is made to the material stock account for finished products.

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Manual Decision Authority:
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