Financial Voucher for Unfinished Production Order

Dr_mjh

Dear Sir/Madam,

If we have a production order in January with 100 Qty to be produced of an item and at the end of January only 70 were produced. We want the financial voucher for the output of the 70 to be recorded in January. I know that the financial voucher for the output of the production order is not recorded untill you change the status of the production order from released into finished but is there any other way to do it?

Thank you for your cooperation.
Best Regards

Dr_mjh

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Dr_mjh

Dear Sir/Madam,

Can Inventory Period be helpful in such situation as I'm considering to use as I impagine that it might help? so Could Inventory period solve my problem?

Best Regards

Alex_Chow

When you output 70, only 70 will be relieved from WIP. Note that it's only an expected cost. After the production order is marked as finished, the cost adjustments will be posted based on the setting you put on ACIE.

Dr_mjh

Thank you for your reply Alex,

Absolutely correct but does that only happens if I'm using the expected cost feature on the inventory setup? or is there other way to get that financial voucher to be recorded?

Best Regards

AdamRoue

Looking at the ledger entries for the 70 would give you your own answer!

Dr_mjh

Dear Adam,

I thank you for your reply but what ledger entries you're talking about the order is still released and G/L entries are recorded only when your change the status to finished. in order for me close my period I have to record the G/L effect of this 70 on the current month. For me I think of two things; either the inventory period or the use of expected cost is there any other possible ways? and do the above two options really gives me the wanted result?

Thank you for your cooperation.
Best Regards

Alex_Chow

Do you have Automatic Cost Posting checked on on the Inventory Setup?

AdamRoue

The final costs are posted at finish, the WIP prior to this.

We would need to know your inventory setup to comment further as alex implies.

Dr_mjh

Thank you all for your reply.

My setup is automatic posting and actual cost.

Looking forward to hear from you.
Best Regards

Alex_Chow

Sounds like customization to me.

Standard NAV does not have Actual Cost on the inventory setup.

Dr_mjh

Dear Alex,

when you untick the expected cost option in the inventory it means that you are using actual cost. another thing my question is simple how can you record the financial impat of a partially finished production order?

Best Regards

Alex_Chow

Run Adjust Cost - Item Entries.

Dr_mjh

Dear Alex,

I use automatic posting and automatic adjust cost as always.

Best Regards

Alex_Chow

Dr mjh wrote:

Dear Alex,

I use automatic posting and automatic adjust cost as always.

Best Regards

Contact your Navision partner and have them look at this problem for you.

Dr_mjh

Dear Alex,

quote:
"Contact your Navision partner and have them look at this problem for you". This answer fits for every case here if we can do that we wouldn't consider MIBUSO wouldn't we?

However, I really thank you for your efforts as I really appreciate it.

Now any one else could tell me how to deal with the financial impact of partially finished production orders; we use actual costs so does anybody can share with us some ideas?

Thank you all for your cooperation.
Best Regards

sacmon

Hi Dear,

I know what you want but in standard NAV you can not see actual financial entries untill you finished the prod. order.
Once you consume inventories against the prod. order system will transfer all the values from inventory account to WIP account and if you make a output and if Expected Cost post to G/L ticked, then system will transfer the expected cost (will pick from unit cost field of raw material) to g/l otherwise no g/l entries will be creating while output.
Till now WIP values resides in g/l and you can see your FG item has been sold and might be you have received the payment from your customer. But in system you are seeing all the values in the WIP once you dont finish the prod. order. Moreover you are talking about the g/l entries, can't you see the item cost. Item cost is also not updating as long as you finish the prod. order and run the ACIE.

I think this is a drawback of NAV and Microsoft should look at this issue as i am also regulary facing these types of issues and not able to reply to my clients.

Also this is not an easy cutomization as if you want any type of customization.

Dr_mjh

Dear sacmon,

Yes, this is what I'm looking for. I guess their point after this is if you consider to put all material cost consumed so far on what has been out put so far then you can consider thir order as finished and create a new one for the remaining qty in the new period. i.e.: what's the point of keeping this order open? :-k

However, what do you do usually in such situation my friend?

...and how about this customization approach, have you ever been through it?

Best Regards

Kowa

I would recommend to create you production order quantities only to the amount that can be produced in one month. Some companies use their Prod. Orders for quick-and-dirty planning too and type in the expected year's demand. That will produce all sorts of problems in the inventory valuation and cost accounting, because the figures needed for an calculation based in reliable figures come in far too late. A helpful customatization could be to offen an option to create a new production order for the remaining quantity if the total output is lower than the original quantity when the order is finished and to convince the users that a Gantt chart actually has some advantages for an accurate planning process.

Even if cost adjustment is set to automatic , it is not triggered when you finish the Prod. Order. You still need to run Report 795.