The RCT-WO and RCT-FAS transaction history transactions have the standard transactions reversed. The receipt quantity updates the inventory location for the current cost period.

When there are WO issue transactions for the item against the same WO, the system considers them rework and they are processed before the RCT-WO. Rework work orders add WIP value to the WO.

Any scrap or rejected quantity cannot go into inventory; therefore, the system prorates the scrap or rejected amount by the received-to-inventory quantity and applies them to the item cost. The system reverses the standard scrap values. Scrap transactions have prorated cost even when the total quantity of work order receipts and scrap that is absorbed by the current period is zero. Consider the following example with the current and expected results at the bottom of the table for period 1 (P1) and period 2 (P2) items:

The system calculates the value of a WO receipt by prorating the total value of each component and operation to give an approximate value of quantity received. Note that, during proration, the value of the cost calculated does not exceed the available WIP value.