OTF Manufactured Part Costs

First post for me here.

I find this forum extremely helpful, and solve all of my issues reading posts here.

I cannot find a solution, so here is my issue: We are an ETO company, and our estimators use OTF manufactured parts 95% of the time due to volume (I’m told). The orders are 1-1 relationship, make to order every time. The OTF parts move at $0, leaving balances in WIP. I am assuming because the system set-up has a default somewhere telling these parts to use standard costing, and therefore move at $0 because there is no std. Anyone got any ideas how to get the default costing method to be average so these OTF parts move at there actual cost?


Can I ask what OTF is - I’ve not heard that before? We too are ETO/MTO, but use only a small selection of purchased raw materials in our builds. You question has perked my curiosity.


Sorry, I should have said On The Fly. I used an acronym I have seen here before. So part does not exist in part table, the Method of Manufacture comes from the quote, and pulls into the job to give materials and op info. The materials are issued and costs against the job build up WIP. Then we ship it, and the value remains in WIP. I have seen people mention OTF trans can be viewed in Part Transaction History, but I cannot see it move at $0, I just know it must if it is not relieving the costs to AR Clearing

Have you run the Wip Capture or Wip Reconciliation report?

Well you may have helped solve my problem. I ran the WIP/Rec and I did find one of the jobs tested in the report at the cost I was looking for. I am in transition moving from periodic inventory to perpetual, previous VP finance did not use WIP/Rec or Cap & Post.

The only issue now is that I only found 1 of 5 selected jobs. I am running cap & post now, will check again to see if this solves my question.

@sstthomas use some caution when running the Wip Capture if it hasn’t been run in the past/for a while. It will post to the GL and you might not want that if posting outdated transactions into the current period.
The Wip Recon report will post the costs to the jobs without posting to the GL and let you preview the GL impact.

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