WO Accounting Close
Work Order Accounting Close (16.21) is usually run at the end of each GL calendar period as part of the period-end closing process. The accounting close serves several functions:
Completes Open Operations
Marks all operations complete. No more labor can be recorded against this work order. Any unreported operations are closed at standard. (This operates like Complete Previous Operations in SFC labor feedback transactions and creates the same GL transactions to update WIP and absorb labor and burden.) Adjusts quantities completed at open operations to match the total of completions plus rejects at Work Order Receipt.
Posts Floor Stock
Costs of components flagged as Issue Policy No are added to WIP before variances are calculated. Thus floor stock cost is not included in variance.
Calculates Usage Variances
Calculates material and subcontract usage variances. Total quantity issued is compared to total quantity required to make quantity reported complete (receipts plus rejects). Any difference is a usage variance.
Clears Out WIP Balance
Sets any remaining WIP balance to zero. Any amount left in WIP at this point is reported as a miscellaneous method variance that cannot be traced to any specific source (for example, material or labor, rate or usage). Method variances can result from the use of alternate bills and routings, different lot sizes, in-process loss, or changes in GL costs (without revaluing WIP). Because costs of component issues are tracked by operation, a method variance occurs if you issue components at an operation different than the one recorded in the bill.
