The WIP Allocation by Cost Object document is designed to manage the allocation of expenses, such as salaries, labor, and other costs, to designated cost objects—a practice that is not commonly found in standard accounting procedures. For instance, payroll calculations are typically handled by the payroll department without consideration of specific cost objects, due to limited access or information about Cost Objects (CO) or projects. This system enables the initial recording of expenses such as salaries, depreciation, or electricity as Work in Progress (WIP), with the flexibility to allocate these expenses to specific cost objects at a later stage.
Overview
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