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If you assigned internal resources to an outside operation with an charge type of Manual, you use the Move Transactions window or the Open Resource Transaction Interface to charges these resources.

If you return assemblies to the supplier, Work in Process automatically reverses the charges to all automatic resources associated with the operation. You must manually reverse all manual resource charges using the Move Transactions window. For outside processing resources with an charge type of PO Move, Work in Process automatically moves the assemblies from the Queue intraoperation step of the operation immediately following the outside processing operation into the Queue intraoperation step of your outside processing operation.

If the outside processing operation is the last operation on your routing, Work in Process automatically moves the assemblies from the To move intraoperation step to the Queue intraoperation step. Work in Process applies PO Move resource transactions to multiple repetitive schedules on a line based on how the assemblies being moved are allocated. Work in Process allocates moves across multiple repetitive schedules based on a first in-first out basis. Work in Process applies PO Receipt resource transactions to the first open repetitive schedule on the line.

Costing Outside Processing Charges at Standard

If the Standard Rates option is enabled for the outside processing resource being charged, the system charges Work in Process at the standard rate and creates a purchase price variance for the difference between the standard rate and the purchase order price. The accounting entries for outside processing items are as follows:

Account	Debit	Credit
WIP accounting class outside processing valuation account	XX
Purchase price variance account (Debit when the actual rate is greater than the standard rate. Credit when the actual rate is less than the standard rate.)	XX	XX
Organization Receiving account		XX

Any quantity or usage difference is recognized as an outside processing efficiency variance at period close.

The accounting entries for return to supplier for outside processing are:

Account	Debit	Credit
Organization Receiving account	XX
Purchase price variance account (Debit when actual rate is less than the standard rate. Credit when the actual rate is greater than the standard rate.	XX	XX
WIP accounting class outside processing valuation account		XX

Costing Outside Processing Charges at Actual Purchase Order Price

The accounting transactions for outside processing charges at purchase order price are as follows:

Account	Debit	Credit
WIP accounting class outside processing valuation account	XX
Organization Receiving account		XX

Any difference from the standard is recognized as a resource efficiency variance at period close.

See Also