(1)
We were able to find out the cause of the issue.
The user performed the WIP completion of the Job in 4 different lots one after the other.
In one of the earlier completion transaction the final completion flag was checked which caused all the WIP valuation to be relieved at that point leaving no amount for the next lot of completed quanitity which also had final completion flag checked, hence ending with zero '0' cost.
(2)
Cost Relieved is NULL For Outside Processing in WIP Value Summary Form [ID 1318788.1]
The cause is
The OSP resource transaction was not yet costed when WIP Assembly completion was done, that is why the cost of the OP was not relieved.
You can uncomplete the job and send back the assembly to shopfloor. This brings back costs of job back. Complete it again so actual costs are relieved now since OSP cost is also included. But, are you sure that OSP transactions were not costed when you completed the job and OSP cost was rolled up into assembly cost? Costs incurred shows some amount in OSP. This is not releived and reason for that could be OSP not in rolled up assembly cost. If assembly rolled up cost does not have OSP element, it won't relieve anything as well. I also feel that even if the OSP was not costed when job was completed , if the OSP element was existing in rolled up assembly cost, the relieved cost would have been -ve and when you actually recieve OSP, it nullifies
How Cost Variance Account in Average Costing is Used with Negative Inventory (文档 ID 467715.1)
The cost variance account does not get used when the qty first goes negative.
Rather, it gets used to reconcile every subsequent transaction until the on
hand qty becomes zero or positive. It is there to reconcile between the
average cost and the receipt cost because until you have a zero or better
onhand qty the receipt does not cause the average to be recalculated.
So taking your example and adding further transactions would give :
| Transaction | Txn Qty | Onhand Qty | Unit Cost | Txn Value | Inv Value | Avg Cost | Variance |
| Opening Position | 0 | 0.00 | 0.00 | ||||
| Receipt 10 @ $1 | 10 | 10 | 1.00 | 10.00 | 10.00 | 1.00 | |
| Issue (1) | 20 | -10 | 1.00 | -20.00 | -10.00 | 1.00 | |
| Receipt (2) 6 @ $2 | 6 | -4 | 2.00 | 12.00 | -4.00 | 1.00 | 6.00 |
| Receipt (3) 15 @ $2.50 | |||||||
| - 1st 4 units | 4 | 0 | 2.50 | 10.00 | 0.00 | 1.00 | 6.00 |
| - Remaining 11 units | 11 | 11 | 2.50 | 27.50 | 27.50 | 2.50 |
Notes:
(1) Issue is performed at current average cost.
(2) Receipt is not sufficient to bring onhand to zero. So average is not
recalculated. This means that the value added to inventory ($6) does not
balance to the transaction value (12). So the difference of $6 goes to the
variance account
(3) Receipt of 15 brings the onhand qty above zero. So it is treated in 5
parts:
(4) Qty of 4 brings the onhand to zero, so this qty is treated in the same
way as (2) - average is not recalculated; value added to inventory ($4) does
not balance txn value ($10), difference ($6) goes to variance account
(5) Remaining txn qty of 11 is treated as a new, regular receipt - average
is recalculated (set to txn unit cost because the prior inventory value = $0).
This balance account distribution that will be utilized with an objective to
keep the Average Cost of the Item constant even when onhand goes Negative. To
Eliminates possibility of having ‘Zero’ Inventory Value.
Cost Variance represents the differential Inventory valuation which has
occurred due to an error in the Process.
Cost Variance Calculation logic:
In your case if we are trying to perform
1.Misc.Receipt for the same Item at $1 ,Qty:10.
Dr.Inventory Valuation Account : 10*1 : $10
Cr.Miscellaneous Account : 10*1 : $10
Current Item Cost after the Transaction : $1
2.Misc.Issue for the same Item at $1, Qty:20
Now system will ensure that the item cost will not be zero out or goes negative
& with an intention to maintain the Item cost at $1.
So Value the positive Qty at the Current Item Cost & Remaining Negative Qty in t
he User defined Miscellaneous Unit Cost.
In your case the Item Unit Cost & User defined Item cost are same it will be:
Cost Variance Value : Positive onhand Qty * Current cost + Differential
Negative Qty * User defined Cost – Misc.Issue Transaction Qty * User Defined
Item Cost
: $(10*1 + 10*1 – 20*1) : 0
So there will no Cost Variance Created
Accounting Distributions Created:
Dr. Miscellaneous Account : $ 20
Cr.Inventory Valuation Account : $ 20
Let us consider a below scenario :
1.Misc.Receipt for the same Item at $1 ,Qty:10.
Dr.Inventory Valuation Account : 10*1 : $10
Cr.Miscellaneous Account : 10*1 : $10
Current Item Cost after the Transaction : $1
2.Misc.Issue for the same Item at $2, Qty:20
In this case the Item Unit Cost & User defined Item cost are not same:
Cost Variance Value : Positive onhand Qty * Current Item cost + Differential
Negative Qty * User defined Cost – Misc.Issue Transaction Qty * User Defined
Item Cost
: $(10*1 + 10*2 – 20*2 ) : $(30 – 40) : $10
Above Differential value will be factored into the Cost Variance Account.
Accounting Distributions Created:
Dr. Miscellaneous Account : $ 40
Cr.Inventory Valuation Account : $ 30
Cr.Average Cost Variance Account : $ 10
Verify the Item Cost Details for the Current Item Cost.
When you have onhand inventory quantity or inventory value crossing the boundary of zero, cost variance could happen.
That is designed and intended behavior.
To prevent it, the user needs to disallow negative inventory.
Development cannot provide a data fix tor this as it is the correct behaviour,
If
the user does not like a balance to be in cost variance account, they
should either adjust it manually in GL or could do an average cost
update transaction by using the cost variance account as the adjustment
account.