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Production Order BOM with negative quantity line

I have a client who has created Production BOM's that have a child item that is a negative quantity. They do this in order to return one item of a kit used in the BOM back to stock, i.e. a nut or diaphragm, that is not needed for the end item. They use Standard Production Orders for their production process.

The issue they have is that the journal entry that is created puts the cost of the negative line item into the WIP Inventory Variance Balance. The controller would like the negative line item cost should go back into inventory and not into the variance account.

Is there another process I could suggest to them that would prevent the cost going into the variance account? They only have 10 BOM's that have the negative line and they are all used for a certain customer would needs the finished product with a different spec.

Thank you, Jeff

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    author's profile photo Former Member
    Former Member
    Posted on Nov 28, 2013 at 04:48 AM

    Hi Jeff,

    This is default by system design. All negative values will goto the various account first. Manual JE is needed to move them to the account they want.

    Thanks,

    Gordon

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