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Handling of Partial Completions On Production Order

  • May 1, 2023
  • 3 replies
  • 208 views
cmoreland
Semi-Pro III
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I am wondering how other folks might be handling the following scenario.  We have a production order of 100 with 50 completed. We have an order of 10 being requested as an “emergency” order. In the past, we would just do a partial to put this into inventory and ship it out. However, what happens is this absorbs all of the cost onto the 10 then adds the other items in @ 0 cost. However, this causes a lot of cost issues. 

I am sure we can't be the only manufacturer that does this type of thing. I would love to know how others handle this.  

Best answer by Debbie Baldwin

@cmoreland  - change the cost type of the Production Order to Estimated. (Instead of Actual) This will help to smooth out the costs. It still uses Actual costs - it just doesn’t throw all the costs onto the first 10 like you state above. Do a few tests - I think you will like this better. 

Luck is what happens when preparation meets opportunity. ~Seneca
Robert Sternberg
estebanperalta54
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3 replies

Debbie Baldwin
Acumatica Moderator
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  • Debbie Baldwin
  • Acumatica Product Manager
  • Answer
  • May 1, 2023

@cmoreland  - change the cost type of the Production Order to Estimated. (Instead of Actual) This will help to smooth out the costs. It still uses Actual costs - it just doesn’t throw all the costs onto the first 10 like you state above. Do a few tests - I think you will like this better. 

Debbie Baldwin
Chris Hackett
estebanperalta54
AndreasKleinfeld72
cmoreland
Semi-Pro III
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  • cmoreland
  • Author
  • Semi-Pro III
  • May 3, 2023

@Debbie Baldwin Thanks so much, I am going to test this and let you know. 

Luck is what happens when preparation meets opportunity. ~Seneca
Chris Hackett
cmoreland
Semi-Pro III
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  • cmoreland
  • Author
  • Semi-Pro III
  • May 10, 2023

@Debbie Baldwin Thanks again for the suggestion. I spent some time testing this. The thing I concluded is this is good as long as your job estimates are pretty spot on. We are a pretty custom shop so sometimes we have builds that just have never been done before so the estimates can be off the first run or two. the problem here is if we had 4 hours on something but realized it at 1 hour we still end up eating the 3 additional hours + overhead in the final cost. This might not be a big deal in some smaller instances however we have 100.000.00 + builds that can get out of control kinda quickly. Just some food for thought. 

Luck is what happens when preparation meets opportunity. ~Seneca
Chris Hackett
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