I’ve been reviewing Job cost as of late for our finance team. I’ve been noticing that some Jobs have MFG-VAR transaction on them, which is normal and we’re trying to get a hold off, but what I didn’t expect is MFG-VAR to happen after running COS/WIP for a job that is complete and not closed. It was my understanding that WIP clears when a job is marked as Closed.
My understanding of MFG-VAR is any cost that has been applied to a job after it has been relived to inventory, shipped or WIP transferred to another job. Key word being “After”.
I know our finance team ran COS/WIP on 6/4, but backdated it to capture before 5/31.
As you can see on the Job Closing screen, the job is not Closed, only Complete.
Am I missing something? If MFG-VAR is captured after a Job is completed, I have some internal process that need to be changed. Which I also question, because I’ve seen WIP cost not move to MFG-VAR after a job is complete and COS/WIP being captured.
It has always been my understanding that you only capture WIP on closed jobs for this exact reason. If the job is not closed, you are always risking something being added to the job (material, labor) which will result in a MFG-VAR because the COS has already run.
@jkane I agree with you. The issue is that we were only closing Make Direct jobs, not Stock Jobs. So we have a ton of Jobs that need to be closed. When i ran the WIP report on those jobs I noticed that we added labor to jobs after they the jobs had been put into inventory. All of these jobs are complete and not closed. When I noticed this, I saw that MFG-VAR was showing up on the WIP report. I would expect that job cost to stay as WIP until the job was marked a Closed and then we Captured. That is not the case.
The WIP Recon report is ESTIMATING what would happen if the job was closed. The transactions have not happened yet and will not happen until the job is closed and WIP is captured.
Technically, you could un-complete the job, reverse the job receipt to inventory, and then receive the job to inventory (again). If you run the wip recon report again, the variances should be gone.
Nothing posts until you run the capture process. Everything is theoretical until that is done. You can even mark the job as closed and nothing will post, everything will still be theoretical. It is the capture process that posts everything to the GL.
5/31 is the apply date, what is the Sysdate and time of that transaction? I did search for MFG-VAR KBs and there are a bunch. As long as the 7118 doesn’t capture twice I guess it is just a head scratcher.
The Apply Date would have been 6/4 on this transaction. I went through tall the MFG-VAR transactions on the Inventory WIP/Recon report. It still doesn’t make sense that there was a MFG-VAR to post when the job was closed on 8/21.
