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Posting Issue with Production and Standard Cost Revaluation

Posted on by 582

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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  • Hendo Profile Picture
    Hendo 582 on at
    RE: Posting Issue with Production and Standard Cost Revaluation

    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.

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Posting Issue with Production and Standard Cost Revaluation

    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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