Correcting work order costing and gross margin – Oracle Cloud Mfg & Costing
Summary
Correcting work order costing and gross margin – Oracle Cloud Mfg & CostingContent
Hello Colleagues,
I would like to hear your experience on this scenario and how you handled it (Process manufacturing with average costing).
- A finished good Y1 is made at $100 (rolled up cost of materials and resources), sold at $200
- Due to excess issue of some raw materials, one work order results in Y1 to be costed at $1000 after the work order is completed, closed and costed
- Output quantity from this work order is sold against a sales order resulting in negative gross margin
- Item is shipped against a sales order and invoice is generated, and then the error is realised
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