We are make to order manufacturing company and very often we come to the situation where we have an order of lets say for 10,000 units but we made a small quantity difference lets say 9,900 due to material shortage or 10,100 and ship these quantities with the customer agreement. now when we close the job we normally change the production quantity to match the quantity we made to do the plan vs actual cost analysis. But I realised that when ever we change the quantity for the make to order jobs, it moved all the quantity to work in progress. e.g.
original production quantity = 10,000
Shipped = 10,100
WIP = 0
when we change the production quantity on the job entry screen it becomes
Production quantity = 10,100
Shipped = 0
WIP = 10,100
can any one explain this thing and also does it effect any costing.
Thanks,
Rashid
original production quantity = 10,000
Shipped = 10,100
WIP = 0
when we change the production quantity on the job entry screen it becomes
Production quantity = 10,100
Shipped = 0
WIP = 10,100
can any one explain this thing and also does it effect any costing.
Thanks,
Rashid