How do you record 100% scrap? we created 50 on the...
# manufacturings
Suitestallion
03/04/2022, 5:59 PMHow do you record 100% scrap? we created 50 on the work order, but we need to scrap all 50, when i put 50 in scrap and 0 in quantity system doesn't like it
r
Rich Keller
03/04/2022, 6:04 PMInventory Adjustment, can't do it on the WO without a quantity.
Rich Keller
03/04/2022, 6:05 PMIt can be moved to COGS via journal entry if required
s
Suitestallion
03/04/2022, 6:06 PMhmm we use standard costing, so if we close the work order without completing it, that would scrap all quantity as well? or that would put it in some kind variance account?
Suitestallion
03/04/2022, 6:08 PMso to do the inventory adjustment, we will finish all 50 like we normally do and turn around and do inventory adjustment for 50? to scrap account?
k
KevinJ of Kansas
03/04/2022, 6:15 PMI'd probably be tempted to scrap 49, and then inventory adjust the 50th, but the net effect would be the same
KevinJ of Kansas
03/04/2022, 6:15 PMJust from a reporting standpoint - it's messier that way.
KevinJ of Kansas
03/04/2022, 6:16 PMDepends on how you are spitting out your management reports on whether that inventory adjustment is treated different than a scrap action
s
Suitestallion
03/04/2022, 6:17 PMhmm as long as those 50 doesn't go in the inventory and the $ amount goes to scrap account i think they would be okay with that
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