Rework Customer Part

Hi Brian,

>
>We have a situation where the Customer has asked us to rework a part because of an error in Manufacturing.
>
>>The requirements are as follows.
>>1. We will not be creating any type of return or credit.
>>2. The rework will be performed at an alternate factory sub contractor.
>>3. Cannot change the Customer Part Number.
>>4. New alternate method is created.
>
>>The problem we ran into was that the part was setup for rework using an alternate method.
> Because we are on standard cost the Cost of Good Sold used the standard cost as apposed
> to the actual cost that was setup in the alt method.
>
>>How do we get the GL to recognize that we are not using the Standard Cost and
> use the Actual Cost that was created in the Alternate Method?

We use a different non-stocking part number but keep the description on the Order the same. Since this part has a zero standard cost, any material and labor entered on the job is a variance. We created a product group for rework where the variance accounts are our warranty expense accounts. Everything gets flushed to the correct expense account at job close. It seems to violate constraint 3 but if it's only the paperwork, then throw out the original and send them something they like.

Mark W.
We have a situation where the Customer has asked us to rework a part because of an error in Manufacturing.

The requirements are as follows.
1. We will not be creating any type of return or credit.
2. The rework will be performed at an alternate factory sub contractor.
3. Cannot change the Customer Part Number.
4. New alternate method is created.

The problem we ran into was that the part was setup for rework using an alternate method. Because we are on standard cost the Cost of Good Sold used the standard cost as apposed to the actual cost that was setup in the alt method.

How do we get the GL to recognize that we are not using the Standard Cost and use the Actual Cost that was created in the Alternate Method?