Scrap cost in jobs

Yahoo Archive
1
Not sure explains but at least its not just us!  Thanks

From: "whitenight922@..." <whitenight922@...>
To: vantage@yahoogroups.com
Sent: Tuesday, April 1, 2014 11:59 AM
Subject: [Vantage] Re: Scrap cost in jobs

 
The scrap in excess of the amount built in to the BOM gets lumped in to the job variance. We're having the same question come up. We created a dashboard that calculated what the reported scrap would have been worth. I don't know if that will help. We're not using that when we're trying to explain our variances, as far as I know. Another option would be to move the parts to inventory and scrap them from there, but that would be a little messy. It would just move the costs around. If you run them through the DMR process, you can set a different GL account for them to go to if you pull them from inventory instead of the operation.
 
I hope some of that helps.
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2
Hi all,
The estimate for a job is $100.00 the actual was $110.00.  The difference of $10.00 is coming into the suspense account. 
When reporting production on jobs, we report scrap.  Does the cost of the scrap pieces come out in the wip reconcilliation as suspense? 
If yes, how can this be avoided? 
thank you in advance.
jacqueline
3

The scrap in excess of the amount built in to the BOM gets lumped in to the job variance. We're having the same question come up. We created a dashboard that calculated what the reported scrap would have been worth. I don't know if that will help. We're not using that when we're trying to explain our variances, as far as I know. Another option would be to move the parts to inventory and scrap them from there, but that would be a little messy. It would just move the costs around. If you run them through the DMR process, you can set a different GL account for them to go to if you pull them from inventory instead of the operation.

 

I hope some of that helps.

4
We are on 9.05.702A.

In the product group GL control. Do you have an account set-up for manufacturing variances? The $10.00 is considered a manufacturing variances and when the job is completed/closed, if the GL control is set-up the system it should DR/CR - Manufacturing Variance and DR/CR - WIP.


Deirdre Sykes | Finance Supervisor
GSI Technologies, LLC | 311 Shore Drive | Burr Ridge, IL 60527
dsykes@...<mailto:dsykes@...> | Phone: 630.590.8112 | Fax: 630.325.8197

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From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of Jacqueline Restivo
Sent: Tuesday, April 01, 2014 10:49 AM
To: vantage@yahoogroups.com
Subject: [Vantage] Scrap cost in jobs


Hi all,
The estimate for a job is $100.00 the actual was $110.00. The difference of $10.00 is coming into the suspense account.
When reporting production on jobs, we report scrap. Does the cost of the scrap pieces come out in the wip reconcilliation as suspense?
If yes, how can this be avoided?
thank you in advance.
jacqueline


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