Recovering WIP dollars for job closed accidentally
Procedures to recover WIP Dollars for Job Closed accidently in cost perspective
Solution ID = KB-334
Version = All Version
Module : SLMFG
Fact : SFC
Symptom : Recovering WIP dollars for job closed accidentally
Database : Progress, SQL
Cause
If someone accidentally closes a job
that was in process, all of the costs that were in WIP will be written off to
the item's inventory adjustment account if actual-costed or to variance
accounts if standard-costed and the WIP buckets on the job will be cleared.
These WIP-clearing entries will be written to the SF Dist journal. You can
change the job's status back to Released in order to continue processing but
doing so will not put the written-off cost back into WIP.
Fix
The best (and possibly only) way to
do handle this is to issue a non-item master material to the job for the total
cost that had been written off. When you do so, you can enter the cost at which
to issue the item and the offsetting account to WIP. The detailed steps are as
follows (read them all thoroughly before attempting this):
1) Find the amounts that were
written off.
Find the journal transactions in the
SF Dist journal which were created when the job was closed. These would have a
reference of the job number prefaced by "INV JCLS" if the job was
closed on the job screen or "INV JFIN" if it was closed via a job
transaction. There may be up to five entries to the job's WIP accounts
(material, labor, fixed ovhd, variable ovhd and outside). If the parent item on
the job has a cost type of Actual, the offsetting account would have been
inventory adjustment. If it was Standard, the offsetting accounts would be
material usage variance and/or routing variance.
2) Issue a non-item master item to
the job.
From the Job Material transaction screen, enter a transaction for an item that
is not in the item master and which represents the process such as
"RECOVERED WIP COST". You will be informed that the item is not in
the item master and that it is not in the job's BOM at which point you should
elect to have it added.
3) Issue it at the written off cost.
In the process of issuing this item,
you will be prompted for the cost at which it should be issued. In the five
cost buckets, enter the amount that had been written off to each WIP account
into the appropriate bucket.
4) Enter the account to which the
amounts had been written off.
When prompted for the Other Account,
if the item is actual-costed, enter the inventory adjustment account that was
hit when the job was closed. That will then reverse the entry that was made to
inventory adjustment when the job was closed. If the item is standard costed,
both material usage and routing variance may have been hit. If only one of the
two were hit, enter that account into the Other Account field. If both were
hit, the easiest thing to do would be to enter one of the two accounts and then
enter a general journal transaction which reverses the appropriate amount into
the other account.
At that point, all of the costs will be back on in the WIP accounts in GL and
the job's WIP buckets. Also, the amounts will have been reversed from the
accounts into which had orignally been cleared.
