# SAP Production Order WIP Calculator for Period-End Close > Source: https://netray.co/tools/sap-production-order-wip-calculator > Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems. > Section: Free Tools ## Short answer Estimate work in process on a production order from actual costs and goods receipts at standard, and compare with WIP at target cost. ## Category sap ## Erp SAP S/4HANA ## Audience - SAP CO consultant - Cost accountant - Controller ## Tool **Kind:** calculator **Currency:** $ **Inputs:** #### Actual costs debited to order **Key:** actual_cost **Type:** number **Default:** 182000 **Min:** 0 **Step:** 500 **Unit:** currency **Help:** Total of material, activity and overhead postings to date. #### Order quantity **Key:** order_qty **Type:** number **Default:** 1000 **Min:** 1 **Step:** 10 **Unit:** pcs #### Quantity confirmed to date **Key:** conf_qty **Type:** number **Default:** 700 **Min:** 0 **Step:** 10 **Unit:** pcs **Help:** Yield confirmed at the final operation. #### Goods receipt quantity **Key:** gr_qty **Type:** number **Default:** 500 **Min:** 0 **Step:** 10 **Unit:** pcs #### Standard cost per piece **Key:** std_cost **Type:** number **Default:** 240 **Min:** 0 **Step:** 1 **Unit:** currency **Outputs:** #### Credit from goods receipt at standard **Key:** gr_credit **Expr:** gr_qty * std_cost **Format:** currency **Description:** GR credits the order at standard price. #### WIP balance (debits less credits) **Key:** wip **Expr:** max(0, actual_cost - gr_credit) **Format:** currency **Primary:** true #### WIP at target cost **Key:** target_wip **Expr:** max(0, conf_qty - gr_qty) * std_cost **Format:** currency **Description:** Value of confirmed but not yet received quantity at standard. #### Difference vs target (potential variance) **Key:** in_process_var **Expr:** wip - target_wip **Format:** currency **Primary:** true #### Confirmed progress **Key:** progress **Expr:** conf_qty / order_qty * 100 **Format:** percent #### Actual cost per confirmed piece **Key:** avg_actual **Expr:** actual_cost / conf_qty **Format:** currency **Chart:** #### WIP and target WIP as goods receipts increase **Type:** line **X:** gr_qty **From:** 0 **To:** 1000 **Steps:** 20 **Series:** - wip - target_wip **Disclaimer:** Simplified. SAP WIP calculation also considers scrap, work in process at actual cost, cost of goods manufactured settings and the results analysis key. Use KKAX or your own results analysis version for the real figure. ## Content **Intro:** At month end, open production orders carry costs that have not yet been received into stock. In SAP the difference between actual debits and the credits from goods receipt is what you capitalise as WIP. This calculator reproduces that arithmetic for one order, so you can sanity-check the results analysis before settling it to the balance sheet. **Sections:** #### How to use it **Body:** Enter the actual costs collected on the order from the order report, the order and confirmed quantities, the goods receipt quantity and the standard cost of the material. The tool computes the credit from goods receipt, the WIP balance and the value of confirmed work that is still waiting to be received. Slide through goods receipt quantities with the chart to see how WIP falls as production is delivered. **Bullets:** - Pull actual costs from the order cost report rather than estimating - Use the same standard price version as the goods receipt posting - Check that confirmations are posted, since progress affects target WIP #### The method **Body:** WIP on a production order equals total actual debits minus total credits. Credits come from goods receipts valued at standard price. If actual debits are higher than credits and the order is not complete, the balance is held as inventory in progress. The comparison with target WIP, which is the confirmed but unreceived quantity at standard cost, shows whether the order has consumed more than plan for the work done. That excess can be reclassified as a variance once the order is technically completed. #### Reading the result **Body:** A positive difference vs target means the order cost more than standard for its progress, so a variance will emerge. A negative difference means you may be under-capitalising, for example because confirmations lead material or activity postings. If WIP is zero while the order is open, check for goods receipts posted ahead of confirmations or an order that should be flagged technically completed. #### Common mistakes **Body:** Confusing WIP with variance on a delivered order. Ignoring scrap, which inflates actual cost per good piece. Calculating WIP for orders that are already technically completed or closed, where the balance should be settled as variance. Running period-end results analysis before all confirmations and goods issues are posted. **Cta:** If month-end WIP review takes hours of order-by-order checking, Netray can build a read-only assistant over your SAP order data to flag outliers. Ask us how that works on-prem. **Faq:** #### How is WIP different from variance? **Answer:** WIP is cost on an open order that has not been delivered to stock and is carried on the balance sheet. Variance is the difference between actual and target cost, and is calculated and settled to the profit and loss when the order is completed. #### Which SAP transaction calculates WIP? **Answer:** WIP calculation is run through results analysis for production orders, commonly with the collective run in KKAX. You then settle the order to post the WIP to the balance sheet account defined for your results analysis key. #### Why does my order have negative WIP? **Answer:** Credits exceed debits when goods receipts were valued at standard above actual cost. This is the favorable variance case. Review the order before settlement, since SAP will treat it as a variance rather than negative inventory. #### Does this work for process orders? **Answer:** The logic is the same: debits less credits. Process orders use the same results analysis idea, but the confirmation and material consumption patterns differ, so verify the target cost basis with your own order type. ## Search terms sap wip calculation, sap production order wip calculator, work in process calculation, sap KKAX wip, sap period end wip, wip vs variance sap, production order settlement, sap order wip balance --- Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json