How to Cancel 'Made-to-Order' Sales Order Line with Job in WIP

Hi all,

What is the correct process for cancelling Sales Order lines that are ‘Make Direct’? I.e. there are jobs linked to the Line releases which are currently in WIP.

I imagine we would close/void our existing Sales order lines. Regarding the jobs in WIP, they cannot go into stock and there are no salvageable materials to return to stock.

Would we then close the jobs, without booking anything to stock?

Thanks for any advice

You’ll need to break the link between the SO Releases and the Jobs.

So, in Job Entry, you can delete the demand links there.

Back on the Sales Order, refresh, and you’ll no longer see the linked jobs. You can then cleanly close/void the lines if you wish.

Since, assumingly, you may already have costs in WIP, and you aren’t going to finish the job and receive to stock, you could “scrap” the part in production. This would at least move the costs into some kind of scrap GL based on the chosen reason code (“Cancelled Order”… or whatever you might have set up). Otherwise, it may stay in your Cost-of-Sales and show up as a variance once you capture WIP.


Thanks a lot for the suggestions.

I believe we will be charging a cancellation fee to the Customer, to cover the WIP costs we’ve already incurred. This would be an additional Sales Order line, that we could invoice against.

We would therefore want the job costs to go to COS (even though we aren’t booking to stock or shipping).

Is this possible?

The other idea was to reduce the unit costs on the existing Sales order lines, so that they total the cancellation fee. We could then ship from WIP and, I assume, just close the jobs unfinished?

Adding another Sales Order line will create new demand for… something… Whether a stock part or make part. And, shipping against this NEW line wouldn’t kill the demand for the original line. You’d still have to close the original job (obviously). I’m trying to walk through the GL transactions in my head on that one.

You could make a stock part called “Cancellation”… adjust a bunch into inventory to play with later. This would allow you to add a line item to the Sales Order to ship against. The “Cancellation” part would pull from inventory at zero cost and you could invoice against it.

The original line would need to be closed… the original job closed. The cost would stay in COS-WIP… but the “Cancellation” invoice would cover it. So… thinking through this more… this should work okay.

This route… you can change the original Line Description on the SO to note it was cancelled. Adjust the price to cover the job cost (plus pain and suffering). Ship the job even though it is incomplete (which closes it and kills demand) and you can invoice the “cancellation price”.

I think this route is probably easier to manage. But you would lose previous history of what you originally sold (price wise)… so there are draw backs.

I think either method would work… just organizational preference I think.


Thanks for your insight.

Sounds like Option 2 might be the way to go. The Order line ‘Book details’ track the change in unit costs, so at least we’d have some traceability.

Appreciate the help!

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Good point!

I would close the sales order lines/release - closing a line without a shipment against it voids it and reverses the booking. This will also create an exception “cancel” message on the job. Production can close the job without doing anything else on it if you won’t be using the product anyway. It will keep the cost with the sales order and customer this way.
You can’t add a miscellaneous charge to a voided sales order line, but you can add it on the sales order header. It sounds like you have another line on the order, so you would be able to get the header misc charge at invoicing the other shipments.
If there aren’t any shipments at all on the order you would have to do a miscellaneous invoice - you can’t pull a sales order with just a misc charge in for invoicing.

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Thanks for the insight @JennL

Could these costs then be moved to ‘Cost of Sales’ if we close the job without shipping?


It might depend on how your GL controls are setup. I can’t remember for sure if this goes to a manufacturing variance, then whether you have this account rolling to cost of sales. The costing method shouldn’t matter because the product isn’t finished. You should test this in a test environment to be sure it works as you need it to.


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If you

  1. close the first line and create a new line with a part on the fly canceling fee part and description with a sale price of the job COS
  2. change the demand link on the job to point to the new line
  3. Ship from WIP