Can you specify how the valuation method is set on the product? Are u using AVC? Cosy adjustment? What is the base for the margin calculation?"

Note: I always recommend to have a WO review before closing a Work order to prevent tracking error messing with the average cost. So the cost controler compares the quantity planned and quantity tracked and investigates in case of important deviation. 

Hi Julien,

yes Avc is used and cost adjustment enabled

The system has recently went live and the users are quiet new and are making mistakes. but you are correct and a checking process should be in place. what you are saying is that there should be segregation of duties (one person creating the WOs and tracking, and another person costing and closing)?

Hi Julien,

yes Avc is used and cost adjustment enabled

The system has recently went live and the users are quiet new and are making mistakes. but you are correct and a checking process should be in place. what you are saying is that there should be segregation of duties (one person creating the WOs and tracking, and another person costing and closing)?

Yes segregation of duties might be a good thing. From experience, manufacturing people are not very concerned by the cost; so having a cost controler might be good. On the other side, once I faced an organization where the bonus of the labors were defined based on the cost result, and the shopfloor manager was very efficient (and motivated) to do this review .

While using the function FUNMSITU can be a good function to do the review, quite often building a dedicated crystal report will be more efficient, especially if there are a large number of WOs.

Now to fix your situation, this is not easy. First you need to fix the AVC value by using the value change function (FUNCHGVAL). But to fix the cost of the sold finished goods, I can only think of doing a manual GL entry...

Just an idea (to test, test and re-test again).

1-First you ensure you are the only user using the product.

2-Then you can try to add an overhead code of the released product with a fix amount coresponding to the missing time.

3-You re-run the WIP finalization (expect result would be a receipt cost adjustment that will create variance not absorbed on the missing quantity).

4-Then you remove the overhead code.

5-Then you run the cost adjustment.

Doing so, I hope to artificially increase the AVC up to the right amount. Let me know if this worked.

I will try this out.

adding an overhead code you mean like a "fixed cost per unit" field on the product master?

No I am not speaking of the fixed cost per unit.

I am suggesting to use the overhead grid on the cost tab of the product-site record:

Set on movement type = Work order receiptn a new overhead with a fix value. You can adapt the example below (assuming the missing value in the AVC base amount is 750 Euro):

If you never worked with overhead before, please be sure to work on a test environment and perform the appropriate tests to approve this work around.

Is there an easy way to know if my WO has been costed when it was closed using the Mass WO closing function (FUNTDUCLO)?

Sure in the work order function the status field is closed + costed.

Whenever I used the mass wo closing function, it is closing the WO but that status field is always says completed. It doesn't say closed + costed even though the order status field on the header says closed. Any ideas on why this is happening?

Thanks Julien,

I was able to add cost to the produced items and absorbed the cost using cost adjustment. still some testing to do in test environment to make sure nothing else gets scrambled.

thanks a lot

Mahmoud

Great. Let me know if you face any other issue. I will certainly try to reuse this solution.

When you ran the mass closure, be sure to check the last field 'Production cost price' (PRFFLG). Then be sure you are not in a blocking situation as defined in the Blocks block.

Is the margin on the sale corrected in this solution? (per original post 'The finished goods were sold immediately')

Yes, the margins are rectified by the cost adjustment process.

try it out

One quick question on this: did it update costs on all transaction associated with the movement (shipment etc)? I've a similar problem with a customer so hoping to use this solution.