Understanding Production Cost Inquiries
The Production Cost Inquiry program (P31022) displays the costs and variances that are associated with a work order or rate schedule. When you select the Cost by Work Center option in the Manufacturing Constants program (P3009) and define cost components by work center, the Production Cost Inquiry program displays cost information by work center. It also displays subtotals by cost components for the work centers in which they occur.
You can review variances by comparing amounts that the system calculated in one mode to amounts that the system calculated in another mode. Modes include:
Standard
Current
Planned
Actual
Completed
Scrapped
The system updates the standard amount fields with information when you create a work order header. The amounts represent the work order quantity multiplied by the frozen standard costs of the parent.
The system updates the current amounts from the current bill of material and routing at the time when you attach the parts list and routing to the work order. The current amount represents the work order quantity multiplied by the frozen standard component costs and the current routing values multiplied by the frozen work center rates.
To generate the planned amounts, run the Manufacturing Accounting Journal Entries program (R31802A) in proof or final mode. These amounts represent the current parts list quantity multiplied by the frozen standard component costs and the current routing values multiplied by the frozen work-center rates.
When you run the Manufacturing Accounting Journal Entries program in final mode, the system generates these amounts:
Actual amounts, which represent the actual quantity multiplied by the frozen standard costs and the actual reported hours multiplied by the frozen work center rates.
The completed and scrapped amounts, which represent the quantities completed and scrapped multiplied by the frozen standard costs of the parent item for each cost type.
For standard costing, review variances to identify errors before you run the Variance Journal Entries program (R31804). For example, if you did not issue parts to a work order or rate schedule, an actual variance appears. You can issue the parts, run the Manufacturing Accounting Journal Entries program, and review the variances again. After you correct any errors, run the Variance Journal Entries program.