Please teach me how to undo a finished production order quantity. I assume I will have to use journals to perform this manually. Which journals and mechanics do I use? My user accidentally over posted an amount. Please provide the basics.
You are no longer able to process against the earlier Production Order. If it is still in released status, you may post Reverse Consumption and Reverse Output in the respective Journals. However, once the Released Production Order is changed to Finished, there is no further processing against the production order.
In order to correct the production, you would need to adjust the quantity through the Item Journal to post a Negative Adjustment to clear the output and post Positive Adjustments to put the component back in stock. When posting the Negative Adjustment for the BOM Output, you may want to set the Applies to Entry to apply and reverse out this specific Output ILE. To maintain costing accuracy of the components, you can set the Applies From Entry to the original Consumption to make sure that the adjusted cost of the consumption is what is used for the value of the component stock put back into inventory.
Hope this helps.
Thank you, Steven, for the feedback. You have provided a great answer!
Once the Released production order is changed to Finished, how can we correct the capacity ledger entries ? We can’t reverse those entries. So the only option we have is to post a corrective transction in the general journal.
For capacity entries, you won’t be able to post against the work center, but you can post to the item value and G/L as if the costs were there. I’d use the Item Revaluation Journal, use the applies-to entry number to bring up the original Output entry and change the value to adjust for the necessary capacity entry adjustment. The Gen. Prod. Posting Group code on the line could be adjusted so that the offset posted to the appropriate absorption account where the work center should have posted.
Hi Dave, I assume user needs to revaluate the output to make it same as the total value of consumed items, adjusting out the capacity posted against it. Then adjust out the finished item and positive adj in the consumed items.