E1: 30A: R30837 WIP Revaluation for Standard Costing (Doc ID 1510992.1)

The WIP Revaluation program (R30837) can be run for standard costed items in discrete, process and configured work orders and should be called from Item Cost Component - Frozen Update (R30835).  For standard costed items, WIP Reval was designed to be called from the Frozen Standard Update (R30835) only.  The standalone version of R30837 was designed for only Actual Cost Work Orders, as well as calling R30837 from Variance Accounting, R31804.

Note:  Flex Accounting from R30837 is NOT possible, and this functions as designed. R30837 will not look for a Cost in F4105, or update labor when Frozen Work Center Rates change.

The purpose of work-in-process (WIP) revaluation is to revalue the production costs for all open work orders in the Production Cost table (F3102), based on the latest item cost.  The report displays any differences between the original work-in-process values and the new WIP values.  Set processing options to create WIP Revaluation journal entries in the Account Ledger table (F0911) to see differences between the old and the new WIP values. 

The system will supply the default work order number in the Subledger field in the F0911 table.   The WIP Revaluation program does not revalue on-hand inventory and cannot be performed for closed work orders.  Closed work orders are characterized by a value of 3 for the Variance Flag (PPFG) field in the Work Order Master table (F4801).

If standard costing is used, performing an automated WIP revaluation ensures that work-in-process inventory always reflects any updates to component and labor costs and eliminates the variances that are generated by cost changes in the middle of a work order life-cycle.  It also makes manual journal entries for WIP revaluation unnecessary.