Holly says she used to use IN-K to adjust average cost on a single part instead of adjusting the parts out of stock and putting them back in at the correct cost (recommended way). But she has an issue with a serial controlled part, and says doing the adjustment out and in is not so easy.
 
What is the recommended way to correct the average cost for a serial controlled part?  The production floor has done some mistakes with a work order. Those mistakes have been fixed, but the costs remain messed up.
 
Please advise!  I can give the full details of the mistakes that have caused the average cost problem if needed.
 
Thanks,
 
Val

Hi Kellogs,
 
Hmmm.. .I was suggesting to her to use IN-C  Enter Inventory Adjustments and adjust the stock back to 0 on hand at the current incorrect cost and then make a positive adjustment to put it back in at the correct cost, then be sure to enter a lot or serial number as applicable....
 
Holly told me:
 
The specific issue I have right now is the part has an incorrect cost due to a couple of work order issues. The first happened when a work order was closed too early @ 3 pcs instead of 10. The work order was re-opened & closed with the proper amount, but that did not correct the average cost. The second issue happened when a new work order was changed from 10 pcs to 4 pcs because we did not have enough stock on some of the parts. Apparently this work order was closed @ 4 pcs, but the original amount to make was not changed & the additional parts were not de-issued. This caused the average cost to increase, once again, for the part. The work order was opened back up & they made the proper corrections/de-issues, but the average cost did not change. Right now the average cost for this part is over $200/ea higher than it should be & I am unable to change it. We do have a WIP variances from both work orders that I can reallocate to COGS; this would correct the overall COGS, but it will not help on the individual gross margin reporting. It makes it look like we are making less money on this particular part.
 
So would doing what you suggested still work?

I just pasted in the working the finance manager is using to describe the problem....  She just means they opened up the work order again...
 
Thanks, I will pass all this along to her!
 
Kind regards,
 
Val