MFG Accounting and Inventory Transfer

[JMast]

Hello All,

We are using Average Cost and costing at the Branch Level. We have a mfg branch and a warehouse branch where the Sales activity happens.

When we implemented JDE in 2003, our mfg consultant stressed the importance of the mfg accounting jobs running before product is moved to the warehouse branch to correctly capture and calculate the average unit cost for the new product.

Our current process:
Completion: moves WO to 95 and writes Cardex transaction
R31802: moves WO to 97 creates JE for Completion
R31804: moves WO to 98 creates JE for Variance in Proof
R31804: moves WO to 99 creates JE for Variance in Final

The R31 jobs run on the scheduler every 15 minutes. The product is not to be transferred until at least 15 minutes has passed.

New Process:
We are in the middle of implementing Lean Mfg and Mfg wants to complete the work order and, when they choose, transfer it to the warehouse branch. They are currently doing the transfer after they have 20 or so completions. They do it by exporting the item, location, qty to excel and pasting into an IT transaction grid.

So much for the foundation, now for the questions:
1. Does it matter if the quantities move when the WO is at 95? (Remember, we are costing at the branch level so all quantities in the warehouse branch come into play in the avg cost).

2. What suggestions do you have for managing this process?

Possibilities I have thought of:
1. a batch process that takes all WO at 95, executes mfg accounting, then transfers to warehouse.
2. somehow prevent transfers from mfg to warehouse until WO is at 99.

Is any of this possible? What are better options?

Please fire away with any ideas you have.

Thanks for the help,

 

[JorgeJDE]

Good business practice requires discipline and, in your case, I'd say follow what your consultant suggested.

On the other hand, to comply with your new business requirement, you'd probably need what I've done in the past which is modify the Work Order Completion program, so as soon as the wo is completed a version of R31802 is automatically submitted for that order. This way you wouldn't have to wait for the scheduled job.

Good Luck!

 

[JMast]

Thanks for the reply.

I had forgotten about the possibility of running R31802 for every work order. We had discussed that in the beginning, but we had a small server and concerned about clutter on the queues. It would be less of a burden on our newer hardware.

Do we only need to run the R31802 before the inventory moves, or do we need to also run the R31804s? Of we only need the R31802, do we schedule the R31804s to run periodically?

Thanks for helping me think through the best practices on this.

Jer