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.

1. From the Navigator menu, select Cost Accounting.

2. From the Tasks panel, select Review Work Order Costs.

3. 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
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 and discrete 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: Fixed. The standard cost of the item is used to cost the provisional completions. You must create a standard cost for the output item when you set the cost allocation factor to Fixed. Percentage. The following formula is used for products that have the cost allocation factor set to Percentage: Percentage = (The total costs accumulated through this operation minus Scrap Reported in this operation) multiplied by the Cost Allocation Factor), divided by the Quantity Produced.

You can view the variance details on the Variance Amounts tab. Information is displayed for the following variance types:

• Material rate variance

• Yield variance

• Job close variance

• Batch size variance

• Usage variance

• Efficiency variance

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

When there's operation yield, the Estimated Scrap Costs tab on the Review Work Order Costs - View Detailed Balances page shows the estimated scrap that has been absorbed into work in process. If there's no operation yield, this tab is called Scrap Absorbed into Inventory. The actual scrap transaction reported in work orders with operation yield are processed with the Operation Scrap Accounting option of Expense, irrespective of the value set up in the cost profile. The timing of the scrap processing transaction depends on the Operation Scrap Valuation option chosen in the cost profile.

The Actual Scrap Costs tab in the Review Work Order Costs - View Detailed Balances shows the actual scrap reported for the work order.