What is WIP clearing in SAP FIN-BAC-INV - Inventory Accounting?

SAP Term: WIP clearing

• Component: FIN-BAC-INV

• Component Name: Inventory Accounting

• Description: Periodic run that selects all WIP objects with the appropriate status and clears the associated WIP inventory. The differences are usually transferred from the WIP journal to the price difference account as total production variances posting: Debit Production Variances, Credit WIP.

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• Key Concepts: 
  WIP clearing is a process in SAP Inventory Accounting (FIN-BAC-INV) that allows users to clear out the Work in Process (WIP) account. This process is used to transfer the costs of goods manufactured from the WIP account to the Finished Goods account. This process is necessary for accurate inventory valuation and reporting. 
  
  How to use it: 
  To use WIP clearing, users must first enter the production order number and the quantity of goods produced. The system will then calculate the cost of goods manufactured and transfer it from the WIP account to the Finished Goods account. The system will also update the inventory records with the new quantity and cost of goods manufactured. 
  
  Tips & Tricks: 
  It is important to ensure that all production orders are closed before running WIP clearing. This will ensure that all costs associated with production are accurately transferred to the Finished Goods account. Additionally, it is important to check that all inventory records are updated correctly after running WIP clearing. 
  
  Related Information: 
  For more information on WIP clearing, please refer to SAP Help documentation or contact your local SAP support team. Additionally, there are many online resources available that provide detailed instructions on how to use WIP clearing in SAP Inventory Accounting.