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Operations managment - prev costs recognized and negative wip

  • 1.  Operations managment - prev costs recognized and negative wip

    Posted 01-17-2023 19:21
    I have a client who is investigating negative wip in their system.

    We found a transaction where negative wip occurred in late December for a specific amount as if an item had been sold in December and the costs had been pulled out of WIP.  But it was not sold in December.

    In early January the item was actually sold on a sales order invoice and we see an entry with a W/T ##### PREVIOUS COSTS RECOGNIZED. which then corrects the negative WIP.

    Can't figure out what steps are happening that causes the early recognition of costs.  Client is currently make a journal to slide the costs into the proper period.

    Thoughts?

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    Thomas Rogers (TomTarget)
    Target System Technology, Inc.
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