Introduction

Production and disassembly orders are processed for completion when the entire production process has been executed. If you have set the valuation method of your administration or the corresponding make items to Average purchase price (APP) or Real time APP, you can complete single and multiple production orders even when the receipts, returns, and scraps of make items are in closed periods. If there is a difference between the calculated APP amount and the prices of the receipts, returns, or scraps and you have defined to recalculate the APP of the end product after the completion process, correction entries for the differences will be generated in the periods of production order completion instead of in the closed periods. Besides that, in order to ensure that the correction entries are handled correctly, the function for performing stock valuation is also enhanced accordingly. As a result, you can avoid reopening closed periods and hence, maintain the results of the receipts in those periods.

Menu path

• Manufacturing/Entries/Production orders
• Manufacturing/Entries/Receipts production
• Manufacturing/To be processed/Complete
• Inventory/Warehouse management/Stock valuation

What has been changed

The changes can be grouped into two parts: completing production orders when the receipts, returns, and scraps of make items are in closed periods and handling the correction entries for the completed production orders during stock valuation.

1. The logic for completing single and multiple production orders  is enhanced so that you have the option to proceed the completion when the receipts, returns, and scraps of make items are in closed periods. This change is applicable if the following conditions are met:
   • the stock valuation method at Inventory settings is set to Average purchase price  or Real time APP or
   • the Valuation method per item setting at Inventory settings is enabled and the valuation method of a make item is set to Average purchase price and
   • the Receipts: Recalculate APP setting at Manufacturing settings is enabled.
   A message will be displayed for each production order that you attempt to complete. Continuing the process will complete each production order and the corresponding suborders. Cancelling the process will apply the existing logic for completing single and multiple production orders in closed periods.
2. Correction entries will be generated in the current period whenever you complete production orders with receipts, returns, and scraps of make items in closed periods if the following conditions are met:
   • the stock valuation method at Inventory settings is set to Average purchase price or Real time APP
   • the Receipts: Recalculate APP setting at Manufacturing settings is enabled, and
   • there is a difference between the calculated APP amount and the value of receipt.
3. The correction entries are derived from the differences between the calculated APP value per make item and the values of the receipts in closed periods. The entries in the closed periods will be retained.
4. The correction entries will be booked according to the existing rules of the corresponding legislations, whereby each entry will use the same general ledger code used in the original production order receipt line, as summarized below:
   
   For more information, see Completing Production and Disassembly Orders, Release 380: Production journalizing for France, Belgium and Italy, Release 370: Production journalizing for Romania,Release 370: Production journalizing for Poland, and Release 370: Production journalizing for Czech Republic, Hungary, Slovakia and Vietnam .
5. The correction entries will be included in the production order report at Manufacturing/Reports/Production orders, actual report at Manufacturing/Reports/Actuals, item cards, project cards, general ledger cards, and work in progress reports. The correction entries will not be displayed in the production order lines for make items section of the corresponding production order.
6. The function for performing stock valuations at Inventory/Warehouse management/Stock valuation is enhanced to acurately handle the correction entries for production order with receipts, returns, and scraps of make items that are completed in closed periods and in various scenarios. The returns and scraps of end products from those production orders will be evaluated together with the corresponding correction entry lines. In order to match the correction entries with the correct production orders, the code of the project linked to the production order will be used for identification. The change is applicable only if the stock valuation method at Inventory settings is set to Average purchase price or Real time APP.

Note: You can perform the completion at the production order entry screen, the function for receiving production orders, and the function for completing production orders at Manufacturing/Entries/Production orders, Manufacturing/Entries/Receipts production, and Manufacturing/To be processed/Complete. For more information, see Completing Production and Disassembly Orders, Creating and Maintaining Production Orders, Overview of Production and Disassembly Orders to be Completed, and Entering and Modifying Production Receipts.

Related document

• Completing Production and Disassembly Orders
• Creating and Maintaining Production Orders
• Entering and Modifying Production Receipts
• Inventory Settings
• Manufacturing Settings
• Overview of Production and Disassembly Orders to be Completed
• Release 380: Production journalizing for France, Belgium and Italy
• Release 370: Production journalizing for Romania
• Release 370: Production journalizing for Poland
• Release 370: Production journalizing for Czech Republic, Hungary, Slovakia and Vietnam