I am looking to incorporate rework into the cost of production at work order level. Found if I just use a downtime category of rework we do not have any GL impact. Although we have some great rework data the financial impact is still not being reported.

Have been testing the use of the machine set up time with recording time via a rework downtime category. We currently only record labor set up times.

What I found however is that the set up time we have in our routings is used for both machine and labor times. That means if we use the machine set up time our costed bill of materials increases to include the rate for machine set up. When closing a work order if there wasn't any rework then we get a favourable variance however what we want is an unfavourable variance when rework is performed!