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regarding to Reverse transaction
- Thread starter katheryb
- Start date
reverse of receipt of goods which have been used up by production.LuisGdelC said:Reverse transactions of what?
Katheryn:
For regular WO think of them as a big cooking pot per work order and id.
You bring in a lot of ingredients (components) and you produce units of dinner (finished product).
The work order will keep track of what was consumed and what was completed.
Then it will try to figure out whether you used more or less ingredients than those required by the recipe (WO bill of materials), based on the total quantity you produced (and not what was ordered). It will then calculate (among other things) differences in quantity and therefore the "Material Usage Variance".
If you used less than what the "(wo required qty per) * (finished + scrapped FG)" , you will have a favorable variance; if you used more an unfavorable variance. There are other types of variances but I won't refer to them.
This calculation can only be completed when you run WO accounting close. The programs cannot and will not assume the qty reported as complete (also true for components) is the total that should be reported for that WO; that is, this could be a large WO for which we will be issuing components and receiving finished goods in several ocasions. You can report completions more than once, same for component issues.
So, imagine this big pot filled with components and suddenly you determine that some of the finished goods were not finished or in the end you do not want to build them or that maybe the WO qty will be reduced so that some components can be used to make other FG that are critical. You can do negative WO receipts (RCT-WO).
Same is true for components, let's say someone over-received a component or that in the end, someone decides that it is not 120 FG what should be produced, but only 100. Let's say you already issued components for those 120 FG. Can you "un-issue" them? YES, do a negative ISS-WO.
Same thing that applies to kitchen can apply here: As long as the component has not been transformed or changed in a way that it cannot be reduced for manufacture the same product or another FG, you can "un-issue" it and move it back to RAW inventory. If the component has been rendered "unuseable" then, the best thing is not to "un-issue" it so that it becomes part of the variance of that specific WO, planner, etc.
As long a you have not performed WO accounting close you can do almost anything you want with the contents of the pot. You can use the WO reports 16.3.3, 4 and 5 to check for huge variances on the ISS-WO vs. "require per".
I hope this helps you
For regular WO think of them as a big cooking pot per work order and id.
You bring in a lot of ingredients (components) and you produce units of dinner (finished product).
The work order will keep track of what was consumed and what was completed.
Then it will try to figure out whether you used more or less ingredients than those required by the recipe (WO bill of materials), based on the total quantity you produced (and not what was ordered). It will then calculate (among other things) differences in quantity and therefore the "Material Usage Variance".
If you used less than what the "(wo required qty per) * (finished + scrapped FG)" , you will have a favorable variance; if you used more an unfavorable variance. There are other types of variances but I won't refer to them.
This calculation can only be completed when you run WO accounting close. The programs cannot and will not assume the qty reported as complete (also true for components) is the total that should be reported for that WO; that is, this could be a large WO for which we will be issuing components and receiving finished goods in several ocasions. You can report completions more than once, same for component issues.
So, imagine this big pot filled with components and suddenly you determine that some of the finished goods were not finished or in the end you do not want to build them or that maybe the WO qty will be reduced so that some components can be used to make other FG that are critical. You can do negative WO receipts (RCT-WO).
Same is true for components, let's say someone over-received a component or that in the end, someone decides that it is not 120 FG what should be produced, but only 100. Let's say you already issued components for those 120 FG. Can you "un-issue" them? YES, do a negative ISS-WO.
Same thing that applies to kitchen can apply here: As long as the component has not been transformed or changed in a way that it cannot be reduced for manufacture the same product or another FG, you can "un-issue" it and move it back to RAW inventory. If the component has been rendered "unuseable" then, the best thing is not to "un-issue" it so that it becomes part of the variance of that specific WO, planner, etc.
As long a you have not performed WO accounting close you can do almost anything you want with the contents of the pot. You can use the WO reports 16.3.3, 4 and 5 to check for huge variances on the ISS-WO vs. "require per".
I hope this helps you
Your message should be appreciated greatly, however I think I should explain the case in the detail.
That is, the purchasing dept need to close a PO which was issued with a wrong currency and open a new one with correct currency. Therefore, the reverse of the RCT needs to do. However, the materials in the old one has been usd by production. And as my colleagues said, only the materials which still stays in the inventory can do the reverse. Now, reading your explanation, I understand the reverse can also be done with such case. But my question is where the transaction is located and how to do it.
Thank you always!
That is, the purchasing dept need to close a PO which was issued with a wrong currency and open a new one with correct currency. Therefore, the reverse of the RCT needs to do. However, the materials in the old one has been usd by production. And as my colleagues said, only the materials which still stays in the inventory can do the reverse. Now, reading your explanation, I understand the reverse can also be done with such case. But my question is where the transaction is located and how to do it.
Thank you always!
Well, you see, this is now a completely different question...
RCT-PO is disconnected with ISS-WO. What you may be refering to is whether you can return even though the items were used, the answer is yes but....
If you are using lot/serial numbers and there is no more left in the ld_det for that item and you do not allow negative inventories (e.g. "overissue" inventory status) then you cannot return because simply there is nothing in stock to return.
So, what can you do? what if you first receive the new PO and then return those items through the old PO? The first receipt will make those items available in stock.
If you are using standard costing I don't see a lot of problems. If you are using average costing then the "actual manufacture" cost of that WO will be different than what it should have been had the items been received in the NEW PO.
So, not being able to do a negative PO receipt is not that the items have been used but the fact that there may be no stock at all and the inventory statuses do not allow for "overissue" and/or you are doing lot/serial control.
I hope this helps you.
RCT-PO is disconnected with ISS-WO. What you may be refering to is whether you can return even though the items were used, the answer is yes but....
If you are using lot/serial numbers and there is no more left in the ld_det for that item and you do not allow negative inventories (e.g. "overissue" inventory status) then you cannot return because simply there is nothing in stock to return.
So, what can you do? what if you first receive the new PO and then return those items through the old PO? The first receipt will make those items available in stock.
If you are using standard costing I don't see a lot of problems. If you are using average costing then the "actual manufacture" cost of that WO will be different than what it should have been had the items been received in the NEW PO.
So, not being able to do a negative PO receipt is not that the items have been used but the fact that there may be no stock at all and the inventory statuses do not allow for "overissue" and/or you are doing lot/serial control.
I hope this helps you.
There is arising another question regarding to your last reply. You mentioned that "not being able to do a negative PO receipt is not that the items have been used but the fact that there may be no stock at all". So, what's the difference between "items have been used" and "there is no stock at all"?
In my prior response I said that if your INVENTORY STATUSES do not allow for overissues (e.g. create "negative" QOH) then you will not be able to "RETURN" an item (e.g. with or without serial number) if the specific location (e.g. ld_det) has not enough qty_oh to do the return. In short words, you cannot return 100 on doing a negative RCT-PO when the QOH available for that item is zero and you do not allow for over-issue.
Again, the fact that you have used these components in a WO or sold them has nothing to do with the fact of whether you can do a RCT-PO.
Hope this makes it clearer
Again, the fact that you have used these components in a WO or sold them has nothing to do with the fact of whether you can do a RCT-PO.
Hope this makes it clearer