
That WIP deviation account (work-in-progress inventory variance account) in SAP Business One records differences between the actual and planned inventory levels. Standard costs of items in production. It enables precise cost control and analysis.
Functions and application
- Deviation recording: Recognises differences between standard price (defined in item master data) and actual costs (determined using methods such as FIFO or moving average).
- UtilisationIs used in a warehouse management system with standard price.
- BookingServes as a contra account to the goods-in-labour account (WIA account) for production orders.
- Automated derecognition: Total deviations are calculated when closing a Production order automatically cancelled.
Account finding
- The assignment is made via "G/L account determination" in the "Inventory" area, where the WIP variance account is defined.
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