Process Work Order Close Transactions
The system adds any remaining WIP balance for the work order to the item receipt value. Note that the system checks to ensure that a negative WIP balance does not cause the item’s cost to be negative. In this case, the system posts the amount that causes the cost to be negative to discrepancy.
The system transfers WIP from the last closed order to the next open order and creates GL transactions to capture the cost movement. Periodic Costing identifies the correct pair of close and transfer transactions.
PC Calculation Before WO Accounting Close
When you choose to run PC Calculation before WO accounting close, the system allocates:
1 WIP cost to by-product
The periodic costing calculation checks for WO closure and for WO accounting close. When the WO is open and co-products and by-products are only partially received, then the system first allocates the WIP cost to by-products as per its PC unit cost of last period multiply the total receipt quantity.
2 Remaining WIP cost to co-products
When remaining WIP costs still exists, the system then allocates the rest WIP cost to co-products.
3 Cost to co-products by alphanumeric order of co-product code
The system allocates the cost to co-products by alphanumeric order of co-product code.
PC Calculation After WO Accounting Close
When you choose to run PC Calculation after WO accounting close, the system allocates:
1 Allocates cost to co-products by the allocation method.
For a closed WO already processed through WO accounting close, the system allocates the cost from a base process to its co-products by allocation method defined in Average Cost Method Maintenance (15.12.5).
• Allocates cost to by-products as per its PC unit cost of last period.
The system allocates cost to by-products as per its PC unit cost of last period multiply the total receipts
• Creates close transactions in tr_hist for each co/by-product (PCCOWOCL PCBYWOCL)
You can see the transactions in the Transaction PC Cost browse collection,
When using the WAVG method and processing co-product orders, when there is no quantity of co-product, the system uses the work order close transaction (WO-CLOSE) to post remaining WIP to discrepancy; then, logs the exception in the exception log. For the FIFO method when processing co-product orders, when there is no receipt of co-product in the cost calculation period, the system uses the WO-CLOSE transaction to post remaining WIP to discrepancy; then, logs the exception.
The system evaluates the by-product PC cost by the last period’s PC unit cost. When the system calculates by-product WO receipts and base item WO closures, it evaluates by the last period PC unit cost.