Release a packing work order, record actual output and close it with the variance explained.
The Warehouse Manager releases the work order against an active bill of materials and routing, an output product, a cost standard and a positive planned quantity. The release is recorded as a production release decision.
Components are issued from reserved stock against the frozen component lines, and each issue becomes a work-in-progress cost entry.
The Warehouse Operator records good quantity, scrap and labour hours for each operation. Another person accepts each entry before it counts.
Accepted terminal output posts to stock at standard value, with the actual work in progress allocated to it and the variance shown.
The work order moves to closed only when residual variance is zero, or when the Finance Manager approves the remaining variance as a production close decision.
And how to keep it from happening.
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