Sage 100

Work Order (yawn) - Customer occasionally gets a debit distribution to the Mfg Variance account instead of finished goods inventory upon posting the completion transaction. I've checked all the setups and everything seems correct. They have only one product line; the default GL accounts are correct. The items being produced are Serial valuation. The work orders are set for a cost completion method of Actual. Could they be doing something procedurally wrong in WO transactions to cause this? Other reasons why the mfg variance account is put into play?

Do they have a PO linked that uses a misc item and the receipt of invoice has not been completed?

Did they issue all of the materials?

@LisaDion - that's a good thought. I will find out. Thanks.

@CooperBlack - they set up the work orders with the manual issue method. They may not issue all of the materials from the BOM, but I don't think that would cause a posting the the variance account. Unless I'm missing something?

Are you saying that the FG inventory does not get hit at all and the total of all the costs gets posted to the mfg variance account? What is the cost applied to the item with the serial number that is completed? is it zero cost by any chance? Do they have an third party enhancements to work order? for example ACSG work order efficiency has some functionality to complete lot/serial items at a different cost than actual.

@DavidOverholt - Yes, the full amount of cost is relieved and posted to Mfg Variance rather than Inventory, which is not posted to at all. The cost is not zero. There are no 3rd party products.

So is your inventory in balance? Do the finished goods show up with a serial number at zero cost?

The serialized item shows up in inventory, on the valuation at full cost. The controller has to enter a journal entry to move the amount from mfg var to FG inventory to make IM balance to the GL.

Sequence of WO transactions an issue?

Any outside processing PO's?

They do link POs to WOs for both misc materials and outside processes.

I know there are issues if you receive the PO without first releasing the work order. Just a thought.