Currently, there are 2 approaches to record WIP in Cloud.
First is the old WIP solution which is inherited from OnPremise system:
It contains 2 steps
v Confirmation/Goods Movement on Production Orders and Process Orders lead to consumption postings (no WIP)
v Period End Closing with steps
v Determine WIP/Variance
Second is the Real-time WIP solution:
The prerequisite is that you need to follow Scope Item 3F0 <https://rapid.sap.com/bp/scopeitems/3F0>
3F0 is optional scope item for Real-time WIP and customer have to ask for activation.
Also note that real time WIP customizing is completely different from normal WIP customizing attached and is only activated once you have scope item 3F0 active.
With this solution:
v Overhead is posted together with Confirmation/Goods Issue
v Confirmation/Goods Movement are posted together with WIP
v Goods Receipt decreases WIP or leads to Reserves
v Status change of order(Finally Delivery, Technically Completed) clears WIP
The easy way to identify which solution you are using is to check the RA key assigned to the Production/Process Order.
If it's "RSEBW - Event Based WIP", then it's the new solution.
The old solution and the new solution don't share the same data tables, so the Apps used to check WIP are also different.
For the new solution, here is a picture to explain the whole process: