Customization DS1115
WIP Cost Reversal
Problem Definition:
ACME builds water dispensers. Some units contain high value assemblies which are treated as capital equipment, so the value is not in an inventory account. When these assemblies are used on a manufacturing order, the normal posting process will adjust the value of the item out of the capital equipment GL account and into the WIP account of the finished good.
When Manufacturing posts the Actual Cost finished good into inventory, it uses the value in WIP to determine the cost of the finished good.
ACME needs the value of these capital items to remain in the capital equipment GL account and not get added to the final cost of the finished good.
Design Features:
Reversing WIP
The customization will monitor the Manufacturing Issue and Reverse Issue posting process. When it detects certain capital items in the resulting Inventory Adjustment, it will create and post a Journal Entry to reverse the GL effects of the Inventory Adjustment.
An Issue transaction credits Inventory and debits WIP. In this case the Inventory account will be a capital equipment account (a regular inventory account is shown below):
The reversing transaction will debit Inventory and credit WIP for the value of the inventory item (using the same GL accounts as the original transaction).
The reversing entry will also show the Item Number in the Distribution Reference field.
A Reverse Issue with a capital item will cause the transaction above to occur in reverse. Manufacturing will Debit the Inventory Account and Credit the WIP Account, and the customization will reverse that.
Assumptions/Requirements:
- The functionality described in this document is intended for the Dynamics GP desktop client. Unless specified otherwise, all testing will occur in the desktop client only. Projects created in Dexterity should have a very high level of compatibility with the Web Client, but cannot be guaranteed without explicitly including additional time in the estimate for testing in the Web Client.