hi,
say to produce output of quantity 5 and finished goods price at $10.
1 25 Oct, goods issued to production order.
2 31 Oct, GR quantity of 2.
3 Oct Month end routine to calculate WIP and during settlement,
dr wip of 30 and
cr revenue 30
4 Nov month end, GR quantity of 1. so there is still of WIP of quantity 2 (2x$10 = $20)
I was told, during nov month end, system will NOT reverse quantity 3 (3x$10=$30) for point 3. meaning system will continue to book new wip of quantity 2. meaning in the system, the total wip is becoming
dr wip 50 (30 Oct month settlement + 20 nov month settlement)
cr change in wip 50
May i know why there is no reversal of below in nov month settlement before book wip of 20 (2x$10=$20)?
dr change in wip 30
cr wip 30
thanks