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Supply chain | Supply Chain Management, Commerce
Answered

Scrapping an Entire Production Order - Standard Costing (Process manufacturing)

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I want to scrap an entire Production order after the first operation, let's just assume the machine for the next operation has broken down.

Is it still the case that when using Standard costing, I still have to RAF at least a good quantity of one before I can 'End' the order.

Surely if this is still the case, my 'Standard variance report' will be skewed.

Any suggestions on how to work around this to ensure proper costings are achieved will be greatfully accepted.

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  • Aparisi82 Profile Picture
    2,180 on at
    RE: Scrapping an Entire Production Order - Standard Costing (Process manufacturing)

    That would be an excellent feature.

    I wonder how SAP or Oracle deal with the same scenario.

  • Community Member Profile Picture
    on at
    RE: Scrapping an Entire Production Order - Standard Costing (Process manufacturing)

    Hi Alessandro,

    Thank you for your response.

    I suspected this was still the case, which is disappointing for any credible ERP system, although I have voted for the idea to implement a solution for this, which can be found here:

    experience.dynamics.com/.../

  • Verified answer
    Aparisi82 Profile Picture
    2,180 on at
    RE: Scrapping an Entire Production Order - Standard Costing (Process manufacturing)

    If you raise a batch order or work order and consume materials , D365 expects a RAF .

    In your scenario , I would scrap the Batch order and consume the materials via movement journal specifying the  right offset account agreed with Finance so you avoid the confusion with generating a RAF of 1 for example and generating massive variances.

  • Oleksiy  Khoroshylov Profile Picture
    1,747 User Group Leader on at
    RE: Scrapping an Entire Production Order - Standard Costing (Process manufacturing)

    Hi Ian,

    Even with pick list journal posted with item consumption you should still be able to reset status back to created and delete the order.

    I tested it by consuming item "seed" against production order. When I reset status and deleted production order, system reversed item consumption:

    pastedimage1620432111547v1.png

  • Community Member Profile Picture
    on at
    RE: Scrapping an Entire Production Order - Standard Costing (Process manufacturing)

    Hi Oleksiy,

    Apologies, I should have been more specific.

    I have materials consumed at the first operation which must be accounted for, therefore resetting the order and deleting it is not viable.

    I have seen previous blogs stating that the need to RAF at least one good item is only applicable when using Standard costs.

  • Oleksiy  Khoroshylov Profile Picture
    1,747 User Group Leader on at
    RE: Scrapping an Entire Production Order - Standard Costing (Process manufacturing)

    Hi Ian,

    You should be able to reset status back to created and delete the order without ending it even after the first operation is posted (route card or job card journal was posted).

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