I entered a Kanban Receipt with a scrap qty using a reason code that is GL controlled to my scrap expense. However, when I ran the IWR, it is showing the cost of those scrap qty going to variance and not the scrap expense.
Anyone have any insight on scrapping through Kanban Receipt?
I would be looking at your Inventory Transaction Hierarchy document to see how it all pins together from a GL perspective, there may also be some exception notes in the help for the kanban screen that might help make sense of the problem.
From what I’ve seen, if you report scrap during labor entry / kanban receipt the costs stay in the job as variance. If you report non-conformance and run the NC through DMR to scrap, depending on how your company config is setup (Move costs to DMR is checked), the costs move off the job and go to the scrap GL.
Jenn
Thank you! I ended up testing it and it did exactly as you states… cost stays with the job until the job closes and then purges to the variance accounts from WIP. Nonconformance and going through the DMR process is the only work around I can think of that would allow the accounting to have control over where the cost will go… in this case… scrap GL