Please help explain why WIP revaluation generated when i update standard cost for materials although all WIP production ended.

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Posted on by Luis Pham

Dear All,

I have a plan to update the standard cost for all raw materials (RM) in the new year and I did the testing on DEV. I saw a strange transaction work-in-progress (WIP) revaluation generated in the voucher transaction.

Below I would like to explain the details of my concern:

* I updated the standard cost for RM (increase price 454 VND)

* The system auto-generated the voucher transaction for RM ( multiple: onhand * increase price).

But

* The system also auto-generated the voucher transaction for WIP. It gets all old WIP production * increase price.

I don't understand what purpose of the kind of voucher transaction. Could someone help to explain what's purpose? if our setting up is wrong and how can I re-set up to stop generating this kind of voucher in the furture.

See red in the picture