+2We have a client that had an error on their production orders and accidentally applied overhead to all of their outside processes. it was not realized until the production orders were completed (NOT Closed), but there are roughly 1000 production orders that were effected.
They tried to do a WIP adjustment to offset the costs, but that was not effective, as it was reversed when the production order was completed.
If anyone has any thoughts on how to best remove these, that would be helpful.
Best answer by vkumar
Hi
Please refer to the instructions provided on following documentation to adjust the cost. Refer to ‘WIP balance correction’ section to adjust cost of ‘Completed’ production order (not closed).
Hope this helps,
Regards,
Hi
Please refer to the instructions provided on following documentation to adjust the cost. Refer to ‘WIP balance correction’ section to adjust cost of ‘Completed’ production order (not closed).
Hope this helps,
Regards,
Any suggestions?
If you do not backflush/have OH tied to direct labor, I’m not sure of the best method to remove the overhead if a WIP Adj does not work. I still wonder if some form of WIP Adjustment is the best way, but maybe there is a certain way to do it that works better than other ways.
I believe I know why the OH did not get adjusted on this particular production order with a negative move transaction. The employee clocked in on the wrong production order and we moved the labor prior to the negative move transaction. Thus, there was no labor hours/cost on the production order at the time of the negative move.
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