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

SAP Term: WIP posting logic

• Component: FIN-BAC-INV

• Component Name: Inventory Accounting

• Description: Posting logic used in that reports work in process directly as such. The WIP posting logic posts all consumption for production directly to a WIP account for example, an accounting exchange on the assets side debits WIP inventory and credits warehouse inventory. The work in process inventory is zeroed out by the WIP clearing function when the order is completed. The WIP posting logic is also used in production processes involving subcontracting.

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• Key Concepts: 
  WIP posting logic is a feature of the FIN-BAC-INV Inventory Accounting component of SAP. It allows for the automatic posting of goods movements to the inventory accounts in the general ledger. This ensures that the inventory accounts are always up to date and accurate. 
  
  How to use it: 
  To use WIP posting logic, you must first set up the relevant accounts in the general ledger. Once this is done, you can configure the WIP posting logic in the FIN-BAC-INV Inventory Accounting component. This will allow you to specify which goods movements should be automatically posted to which accounts in the general ledger. 
  
  Tips & Tricks: 
  It is important to ensure that all goods movements are correctly posted to the relevant accounts in the general ledger. This will ensure that your inventory accounts are always up to date and accurate. Additionally, it is important to regularly review and update your WIP posting logic configuration to ensure that it is still relevant and accurate. 
  
  Related Information: 
  For more information on WIP posting logic, please refer to SAP's official documentation on FIN-BAC-INV Inventory Accounting. Additionally, there are many online resources available which provide detailed tutorials and guides on how to configure and use WIP posting logic in SAP.