Has anyone experience in using negative resource overheads?
We tested this so that a separate resource was established and a negative overhead rate was linked to this resource ("Item Basis" was set as Item). This new resource was then updated in the routing of a single item.
The negative overhead was absorbed when the item was manufactured but for some reason the negative overhead was also registered as Final Completion Variance (Debit WIP Account, Credit Variance Account). Is anyone able to say why this is happening? Is it possible to use a negative overhead rate without registration of Final Completion Variance?
Many thanks in advance,
Edited by: 958941 on Sep 13, 2012 5:47 AM