The WIP balance on production orders, that have been reported as finished, will end up being the total amount of the variances that will be booked when the production order is ended. Ideally a user would see this amount prior to ending the production orders so that any needed corrections could be done prior to ending. The business case would be a user has a filtered view of all production orders in reported as finished status: and prior to ending them could sort by the WIP value in descending order to see which production orders need research. It is simply not feasible to pull up each production order and select the WIP valuation individually. In a standard cost situation, reporting a finished quantity will book inventory at standard and remove WIP at that same amount. So, any value remaining in WIP prior to ending the production order will end up being booked as variance. Seeing this amount ahead of time can point out errors in reporting, bad standards etc.
Comments
I believe the focus should be on actual versus estimated consumption, as this is where the differences in production will lie. The analysis of price variance for materials should be reviewed in terms of input variations. Ultimately, rather than requesting a process that simulates the completion of orders—something I understand is very complex—I would ask for a comprehensive report that analyzes deviations in production consumption, including both materials and resources.
Category: Cost Management
This has been a request on every production project I have been a part of, resulting in most clients having to build some sort of report or use Macros with the cost estimates and costing report. For some clients who want to be able to auto-end production orders that don't exceed a variance threshold, they have to do an enhancement so that this projected variance can be used to filter the batch job for ending production orders. Please add the absolute variance and a calculated percentage.
Category: Cost Management
Long overdue, much needed functionality.
Category: Cost Management
This actually applies to all production postings, not just the variances and the WIP, one form for all of the vouchers would be ... very helpful. :-) It's the only way to Taccount a production order quickly and look for issues. As John said, a separate form maybe?
Category: Cost Management
If speed of opening the form is a concern a calculation could be called as needed. Suspect a new form would be created for this analysis
Category: Cost Management
Excellent idea!
Category: Cost Management
This is an excellent idea! Thank you for submitting it, John Conwell!In the current state, I have to select production orders individually and look at their WIP balance statement. This is a very time-consuming process and since it is not feasible to review all production orders that are reported as finished, I am only able to spot check a small sample before ending a large batch. At is point, the only way to do a thorough variance review is to look at the GL postings after ending production orders. If I could see the WIP balances before closing the production orders, I could investigate problems before they are posted and avoid potential variance reclasses. This would save me a lot of time!
Category: Cost Management
I think it will be awesome to have such an ability to review potential variances before ending production/batch orders, and there is no embedded PBI report that could show such details. So I definitely vote for it.
Category: Cost Management