WIP Costing Going Wrong
When We open Discrete Job and Components / RM are issued over and above the required Quantity ( Excess RM Issue ) the value of issues is showing as Cost Incurred. when Job Quantity is completed, the cost relieved should be for completed Quantity as per BOM whereas Cost is relieving based on the Total Cost Incurred Value . Later, when excess component issued in the Job are returned to store, then the incurred cost is getting reduced but relieved cost is unchanged . Due to this Variance is appearing as Negative Value..
For Eg. : Let Say we have Open Job for 100 Nos. , for 100 required qty. 100 and issued quantity is 120. then system is showing Incurred Cost for 120 Nos. ( Issued Qty. ) that is correct , when Job is completed for 100 Nos. the cost relieved is showing cost of 120 Nos. and Balance WIP value as Zero. After returning Excess Issues qty ( 20 nos. ) , Cost incurred appearing for 100 Nos. , relieved cost still appearing for 120 nos and the WIP Value becoming Negative corresponding to ( 20 nos. )