You’re offline. This is a read only version of the page.
110
Hi all.
I run across the below scenario with one of our clients.
A production order is created with sub contract configuration.
The related sub contract PO is invoice updated. The full purchase cost (invoice amount) moves into WIP (stocked product is enabled for the sub contract service item).
The client then posts a negative picking list (picking list with minus quantity) and brings the consumed stock to inventory - this is because, it is realised that they are material rejections and have to be returned back to the customer.
But the client holds that what is paid to the vendor is paid and that cannot be reclaimed, which means it has to be passed on to P&L as an expense.
But actually the purchase cost has moved into WIP now.
The requirement is to close the production order with zero quantity and reverse the WIP booking (which will ensure the purchase cost moving out of WIP).
Is it possible to handle this in AX?
Thanks for your suggestions in advance.
Regards
Sriram
Hello Sriram,
If I understand you correctly then you cannot do anything with the production order and literally not move forward or backward, right?
If you have a look at all of the transactions posted (inventory transactions and ledger postings made), do all of those transaction 'eliminate' each other an add up to zero?
That is, is everything back in inventory from a transactional perspective and is everything reversed from a financial perspective?
Best regards,
Ludwig
Hi Sriram,
Please don't not try to break the standard logic of Dynamics which may cause more serious problems.
You can try to solve it as below :
1. For the main production order you should cancel it and delete it after resetting the status to created.
The error you met when resetting status to created is caused by the negative line because the system will make the opposite direction picking list to off set the picking records you made of each bom line.
If you post the qty of the negetive bom line with picking list it means you reveive these items to stock.
When resetting status the system will try to consume the items you received from negative line, if there is not enough stock at that location the resetting failed. So please check the available stock of it.
Also the situation you have two lines of the same item usually comes from the wrong operation when creating picking list journal line manually. Please create new picking list journal line with Lot ID not Item number.
2. For the ended sub production orders
Please use inventory BOM journal to proceed dismounting which will consume the WIP and receive the components of it to stock.
Best regards,
Hi Ludwig,
The case is a bit weird. The material is returned back by sub-contractor without processing. So, the client wants to bring the stock of the materials as RM and return back to the vendor. That is the reason why they post a negative picking list - so that the raw material comes back to stock as such.
If the production order is finished , then the stock that comes in would be the FG part and there would be no stock for the RM parts which is to be returned to the vendor.
Regards
Sriram
Hi Leo Wang,
The situation is
(1) Production order was created, estimated, scheduled, started
(2) The sub-contract PO has been fully invoiced
(3) What ever material that was posted initially through the picking list was reversed and the same raw material has been brought back to stock (this stock is there in inventory)
(4) The production order has been reported as finished but with zero quantity (the production order status is : report as finished ; but the RAF quantity shown in the filed is 0)
Now the issue is - since the report as finished quantity is zero, system does not allow to end the production order.
If we try to chnage the status of the production order to 'created' system throws - insufficient stock error message (possibly because there are two picking lists for the same material , one with positive and another with negative).
So neither can the production order be ended nor can it be brought back to created state. There are about 100 production orders in this category.
Should we customise AX to allow it to end a production order with zero quantity - is that the only option?
Regards
Sriram
Hi Sriram,
Can't you complete the production order as usual, which clears your WIP, and then scrap the produced items? This should clear your WIP account and put your costs to your P&L account at the time you scrap them e.g. by posting an inventory adjustment journal.
Best regards,
Ludwig
Hi Sriram,
Unfortunately, the production order cannot be closed with 0 qty.
Yet you can revert the status to "created" and then delete it.
For the items they purchased in purchase order, you can use credit note to return it back to supplier.
I don't know what "reverse WIP booking" means.
If it means removing the reservation between production order and the purchase order, it will be made when you delete the production order.
Best regards,
Stay up to date on forum activity by subscribing. You can also customize your in-app and email Notification settings across all subscriptions.
#1
André Arnaud de Cal...
291,253
Super User 2024 Season 2
#2
Martin Dráb
230,188
Most Valuable Professional
#3
nmaenpaa
101,156
Share
Report
All responses (
Answers (