Here you choose how to calculate the WIP value of material. The available alternatives are:
SO Mark-up for Purchase parts
This alternative allows you to select whether or not to include the SO (Storage Overhead) mark-up in the material cost for purchase parts. This mark-up is included in the material cost by default.
Price Alternatives
Here you select a price alternative for P-parts, S-parts, M-parts + Transfer to stock. The default option is Standard price, which is also recommended as the current price alternative. By checking the check box you select to Distribute processing/subcontracting/material.