Understanding WIP cost transaction type (TXNTYP)

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When a work order is created and processed, costing records are stored in the WIPCOST table based on the setup of the product valuation method and the time rate linked to the costing dimension or overheads. The system uses WIP transaction type “TXNTYP” to identify the origin of these costs. TXNTYP list of values are stored in local menu 2358.

The information below covers the TXNTYP basics (excluding subcontract) and where they are coming from:

Material tracking will generate TXNTYP 1 for Material consumption and TXNTYP 5 for Material expense (when overhead exists).

Time tracking for labor cost uses TXNTYP 2 and Labor expenses TXNTYP 6 for overhead. For machine cost, TXNTYP 3 is used and if Machine expenses exist, TXNTYP 7 is used.

When the actual cost is calculated by running WIP finalization “FUNWIPMFC”, several records maybe created based on the valuation method of the product:

If produced product is greater than zero and valued with the Standard cost valuation or Revised standard, the variances records will use:

TXNTYP 9 for Variance on material

TXNTYP 10 for Variance on labor

TXNTYP 11 for Variance on machine and TXNTYP 13 for Variance on overhead

If produced goods is valued with the order cost, one adjustment record with TXNTYP 17 will be created.

If no quantity produced, one balance record will be created with TXNTYP 15

If there is a scrap quantity, one scrap record will be created with TXNTYP16

Finally, if overhead is managed on released product, then the material indirect cost will be created with TXNTYP 5.