Review Work Order Costs
You can review work order costs for process manufacturing and discrete manufacturing on the Review Work Order Costs page. The accounting transactions for work in process balances are displayed, including costs of inputs, outputs, scrap, and standard cost variances.
To review work order costs, perform the following steps.
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From the Navigator menu, select Cost Accounting.
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From the Tasks panel, select Review Work Order Costs.
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Search for the work order records by Cost Organization. You can also filter by Cost Book, Plant, Output Item, Work Order Number, and Work Order Status. The fields are described in the following table.
Field |
Description |
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WIP Balance |
The work in process balance is equal to the sum of input and resource costs, minus completions and scrap costs. |
Variance Percentage |
The difference between actual and standard cost as a percentage of output cost. |
Scrap Percentage |
The scrap cost as a percentage of total work order cost. The processing of scrap valuation and scrap accounting is determined by the Cost Profile settings for your organization. For more information, see the guide Implementing Manufacturing and Supply Chain Materials Management. The scrap costs are calculated using the following formula: Scrap costs = (The total costs accumulated through this operation) multiplied by the (Scrap Quantity divided by the Batch Quantity) |
Amount in Cost Book Currency |
The value of input and resources at operation and cost element levels. |
Operation Completion Quantity |
The total quantity of completions and returns. |
Cost Allocation Factor |
The product costs for process manufacturing transactions are calculated based on the cost allocation factor defined in the work definition for the primary product, co-products, and by-products. All product completions processed before a work order is closed use an estimated cost based on the Provisional Completion setting defined for the item's Cost Profile. Once a work order is closed, the cost allocation factor is used to calculate the actual product costs. The cost allocation factor settings are as follows:
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You can view the variance details on the Variance Amounts tab. Information is displayed for the following variance types:
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Material rate variance
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Yield variance
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Job close variance
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Batch size variance
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Usage variance
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Efficiency variance
Yield Variance is used for process manufacturing work orders. The formula for calculating the yield variance is as follows:
Yield Variance = (The actual reported quantity minus the planned scaled quantity) multiplied by the standard cost of the product