E1: 30A: R30837 Does Not Use Correct Calculation For Grade And Potency Items
Last updated on MARCH 29, 2018
Applies to:JD Edwards EnterpriseOne Product Data Management - Version 9.2 and later
Information in this document applies to any platform.
When doing cost rollups R30812 Simulated Rollup and R30835 Frozen Cost Update and calling WIP Revaluation R30837 from the R30835, the R30837 is not taking into account Grade and Potency items. This cause the R30837 to incorrectly revalue WIP and update the P3102 / F31022 which leads to incorrect / bogus variances once a work order is completed and R31804 Variance Accounting is run. Note this issue can be duplicated using Standard Work Orders and Potent Items, or Process Work Orders and Potent Ingredient Items.
Steps To Duplicate:
1. In the Item Master and Branch Plant Create a M stocking Type Parent Item, Inventory Cost Level 2, UOM EA, P4105 Sales/Inventory Cost Method 07, Purchased Cost Method 08 i.e. Item 32918
2. In the Item Master and Branch Plant Create a P Stocking Type Component, Inventory Cost Level 2, Primary UOM GA, Production and Component UOM GP, Create UOM 1 GA = 1 GP.
3. Inquire on Component 32918GP in the Item Branch Plant and Row Exit to Additional System Info and in the Grade And Potency Tab setup Potency Control = Y, Standard Potency = 90, From Potency = 50, and Thru Potency = 100
4. In P4105 Sales/Inventory Cost Method 07, Purchased Cost Method 08 Add $1.00 for purchased cost. i.e. Item 32918GP
5. Adjust in a some Inventory in i.e. Branch Plant M30 primary location only Qty of 100
6. Go to menu G3011 / P3002 and Create a BOM for the Parent Item 32918 with component 32918GP on the BOM Qty 1.00
7. Simulate R30812 and Freeze R30835 Cost without calling R30837 WIP Reval for Parent and Component blow through the BOM i.e. don’t use single level.
8. Check the P30026 for Parent Item and Component. Notice the Parent Items cost was rolled up taking the 90% Standard Potency into account. i.e. Components P4105 08 Cost $1.00 = 1.1111
9. Go to menu G3111 / P48013 and create a WO for the Parent Item 32918 Qty of 10 attach the Part list. Then go to P31022 / F3102 after WO Header and Part list attached. Make note Standard and Current are correct
10. Go to menu G3111 / P31113 and Issue material for item 32918GP Qty 5.
11. Go to menu G3116 / R31802A run MFG Accounting in final mode and ensure there are no errors. Check P31022 / F3102 Planned, Actual, and Completed are correct.
12. Go to menu G3014 / P4105 and change P4105 08 purchased cost from $1.00 to $2.00 for Potent Component 32918GP
13. Go to Menu G3014 and Simulate cost for the parent and component using R30812
14. Go to Menu G3014 / P30026 and note R30812 has is again correctly using Potency of 90% for the parent item. i.e. P4105 08 cost 2 / Standard Potency For item in Branch Plant .90 = $2.2222
15. Go to menu G3014 / R30835 and Freeze cost for parent and component. However this time Invoke WIP Reval for work orders, and call a version of R30837 WIP Reval via the R30835 processing options.
16. Go to menu G3014 / P30026 make note Frozen Update is again correctly using Potency of 90% for parent item. i.e. P4105 08 cost 2 / Standard Potency For item in Branch Plant .90 = $2.2222
17. Go to submitted Jobs and make not of R30837 WIP Reval PDF showing new Cost did not use the Grade and Potency percent. The System / R30837 should have taken Qty issued to WIP 5 X Cost Change $2.00 / Standard Potency Percent .90 = $11.11 for the New Total WIP Cost, with a WIP Variance Amount of 5.55. The system / R30837 simply treated the cost as standard i.e. Qty issued to WIP 5 X Cost Change $2.00 = 10 New Total WIP Cost with a WIP Variance of 4.44
18. Go to menu G3014 / P31022 when looking at the F3102 / P31022 for the work order one can see due to incorrect Revaluation by R30837 it will causes bogus Engineering, Planned, and Actual variance journal entries in the F0911, once the work order is fully issued and completed at standard and R31804 variance accounting is run.
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