E1: P31022 Production Cost Inquiry – Completed Amount balloons after making Corrections to the Work

Hi All

We came across two large variances for 2 work orders that showed a Completed unit variance in the amounts of ~$88 million and $22 million. The Completed amount should be $5652. The Completed units did not change. These two work orders had a negative inventory issue processed against them.  When the JE’s were ran the variances ballooned.

When Supervisors go to correct over-issues or those done by mistake, for components issued to manufacturing work orders, a negative (or reverse) issue must be entered for each work order using Inventory Issues (P31113).  

The process that is followed is Accounting will identify variances in R31802A report status 97(Variance Report Printed. Accounting changes the status of the Work Order back to Status 88 (2 Days from Final Accounting).  Once the Supervisors have made their corrections they move the status back to 95(Ready for Final Acctg).  The work order was pushed back to 95 then we rerun R31802A (Create JE Entries).