Wrong quantity on production order

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Posted on by Community Member

Hi,

I have a production order that has quantity of 500, while the intended amount should have been 28. 28 have already been reported as finished and posted to inventory. If I attempt to end the production order as is I will have a large variance. What's the best way to address this issue and not have the variance? Of course, there might be small variance due to, let's say, hours posted.

Thanks

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Tim Schofield on at

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You'll only have a variance (500 vs 28) if you have forward flushed or back-flushed items or route transactions for 500 (instead of the 28). So I think you'd review your posted picking lists and route cards and reverse any transactions that were 'over-booked' and then end the order.

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Nagendra Varma K on at

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Hi S3rg

Try to post remaining report as finished Qty in error qty and post RAF and End Production Order.

Thanks

Nagendra Varma K

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Weaveriski 23,620 Moderator on at

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If you post the rest as error and the consumption of labour and material reflects what you started, you will either create a standard cost variance or impact on the cost for the good items. Check the underlying transactions before as Tim suggests.

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Community Member on at

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Additionally, if you change the pick list or order quantity, as opposed to just ending it short at 28 of 500, re-estimate so that the planned requirements and capacity reservations are cleaned up, which can also help avoid variances.

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Community Member on at

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I checked and verified that all transactions reflected the RAF quantity. After I ended the production order, the variance was only $3.55 VS ~$6K.

Thanks everyone!

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guk1964 10,888 on at

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In simple terms there is principle that what comes out should equal what went in

In effect you have a panned vs actual variance of finished product and this is cancelled out by a similar amount planned vs actual variance of component consumption. Other than over-under use, and clerical and BOM errors, there maybe some variances due to set up costs e.g. fixed scrap, being amortised over a lower quantity than estimated.

So if you finish short then your issue is more about variance to plan than it is to unit to cost.

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