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Hi.
The table below is a chronological list of events that occurred recently. As a result, we have a value in our WIP account which shouldn't be there. This has occurred because (presumably) the calculation of the WIP adjustment on "ending" a production order is based on a cost that has been updated because of the standard cost revaluation. Has anyone experienced this. Is there a setup parameter that overcomes this issue? Cheers James
| Event (Chronological Order) | Item | Cost | ||
| Formula Created | Material A | $5.00 | ||
| Route A | $1.00 | |||
| Production Order Consumption | Material A | $5.00 | Increase WIP$ | Reduce SOH RM$ |
| Route A | $1.00 | Increase WIP$ | Increase WIP Recoveries$ | |
| Report as Finished | Finished Product A | $6.00 | Increase SOH$ | Reduce WIP$ |
| Std Cost Revaluation | Material A | $5.50 | Increase SOH$ | Increase Clearing$ |
| End Production Order | Adjust Variances$ | Adjust Consumption$ |
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Hi Ludwig
This has occurred more than once. We have not ticked the latest cost price checkbox. Changes in raw materials and route cost have been made between recording consumption and ending the production order. We only use standard cost. Cheers. James.
Hello James,
Did this happen only one time or does it occur all the time for each and every production order that is finished?
For your the item that is produced have you activated the "latest cost price" check box in the released product details form?
Has any of the raw materials used or the cost for you route been changed recently? If so, have you changed (recaclulated) the cost of your production item before starting the production?
The raw material that you use, is it also trecorded with standard costs or do you use a different evaluation principle for those parts?
Ludwig
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