Supply Chain Management - PSFT (MOSC)

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Rework PIDs not transacting properly. Labor and Overhead values of the Yield Loss quantities are no

edited Apr 23, 2018 5:03AM in Supply Chain Management - PSFT (MOSC) 1 commentAnswered

When we process a Rework PID in which we consume more than the quantity completed (in other words, there is yield loss during the rework process), the Standard Cost Value of the Labor and Overhead of the Yield Loss quantities are not removed from the WIP account and booked to the proper Material Variance or Rework Expense accounts.  Is there a special method for recording yield loss on consumption for Rework PIDs?

As an Example:

If we are Reworking an Item with a Standard Cost of $3.50/unit.  We set up a Rework PID with a Start Quantity of 1,000 units.  We issue 1,000 units to the PID.  We record a Completion of 900 units with 100 units in Yield Loss.

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