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Crystal Reports, ODBC & Access >> Access General Issues >> WIP Variance
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Message started by Kelloggs on 09/10/09 at 11:50:49

Title: WIP Variance
Post by Kelloggs on 09/10/09 at 11:50:49

I have always been curious about how EVO get the WIP Variance (JC-M)

This query will show anything that has a "WIP Variance" but how do evo gets the Variance Value?

SELECT
WORKORD.MTWO_WIP_STATUS,
WORKORD.MTWO_WIP_WOPRE,
WORKORD.MTWO_WIP_WOSUF,
WORKORD.MTWO_WIP_DESC,
WORKORD.MTWO_WIP_ATOTAL,
WORECV.MTWOR_REF
FROM WORKORD INNER JOIN WORECV ON (WORKORD.MTWO_WIP_WOSUF = WORECV.MTWOR_WOSUF) AND (WORKORD.MTWO_WIP_WOPRE = WORECV.MTWOR_WOPRE)
WHERE WORKORD.MTWO_WIP_STATUS = 'C'
AND WORECV.MTWOR_REF = 'WIP Variance'
AND WORECV.MTWOR_AVGC <> 0
AND WORKORD.MTWO_WIP_ATOTAL <> 0

:-[

Kelloggs

Title: Re: WIP Variance
Post by cathyh on 09/10/09 at 13:34:43

As far as I know there are two ways to get WIP variance, which is posted when you close the work order:

If you finish production at Standard cost, then the Variance posted when you close the work order is the difference between standard cost and you actual costs to the work order.
If you finish at actual cost, you will only get variance when, after you have finished production on the work order, you add costs by issuing items or adding labor, so that when you close the work order, these additional costs are posted as a variance.

I'm not sure when it was added, but the current Evo version has an option in Work Order defaults to"process" the variance when you are closing the work order in WO-J. You can read about this in the help menu under work order defaults (Evo-ERP).

Hope this helps.

Title: Re: WIP Variance
Post by GasGiant on 09/11/09 at 03:43:12

When a work order is opened the system uses the Standard Costs as a guess of what the cost of production will be. When the WO is completed (WO-I is done and WO closed) the system compares the expected costs (Standard) with the actual costs posted. The difference is a variance. We print IN-N-C weekly and research any WO's that have a variance of > 15% either way. This helps us to catch things like over issued parts, changes in costs that should be considered for repricing, and times when we have forgotten to change the part type to R when we have contracted out assemblies. We also print IN-N-A weekly and look at PO's, Adjustments, and Scrap to help locate the same kind of problems and to assure that IN-C is not being misused.

Title: Re: WIP Variance
Post by Lynn_Pantic on 09/11/09 at 13:13:30

The WIP Variance that is posted to the GL and visible in JC-Q is the difference between the ACTUAL cost that goes into the work order and the ACTUAL cost that comes out. If Finished Production is posted at Standard, then the variance will be the difference between the actual cost of materials, labor and processing compared to the Standard but if Finished Production is done at actual, answering "Y" to the question "Is this the final receipt for this work order?" then other than a few pennies of rounding errors, there will be no WIP Variance when closing the work order.

You can get additional WIP Variance after the fact if an invoice is entered in AP-C with a price change for a PO Receipt to a work order that is closed. By definition a closed WO must have 0 cost so any price change entered after the fact will update the Job Cost reports but post immediately to Variance.

The IN-N-C "Variance" (and unfortunately the same term is used but it is a completely different thing so it definitely causes confusion) is the difference between Expected costs and Actual costs but there isno actual GL Posting for that amount, it is just a report to use for analysis