There was a mistake in the Product Structure for the attached Production Order so to correct it,

1. all the material issued was unissued

2. all the qty received to the Production Order was reversed

Even with doing the above steps, the -155K of Favorable Material Variance is offset by 155K of Unfavorable Method Variance. Therefore, how do we zero out the -155K of Favorable Material Variance and 155K of Unfavorable Method Variance (we don’t want to do a manual journal entry, we want QAD do it for us automatically. In the past, when we have done #1 and 2 above, we have never had an issue)

The steps that the Planner used were

1. Unissued the material using Production Order Component Issue (16.5.12)

2. Unreceived the qty put into inventory using Operation Activity Transaction (16.13.13). On each Operation Step, put the quantity completed as -500

How do we reverse the -155K of Favorable Material Variance is offset by 155K of Unfavorable Method Variance.