Rework

Legacy Contributor

How does your company handle reworks?  If they are legs how do you put the costs to a different GL account?  If you put it into inventory how do you handle costs?

Legacy Contributor

Hi,



What we have done in the past to handle rework on an item was to setup a dummy Item. Usually with a description of Item Rework. We then create a work order with the operations need for the rework. Now assign the item that needs to be reworked as a requirement to your starting operation. This will bring the item into the work order with its current costs. Now the trick here is to setup the item you are reworking as a co-product on the work order with 100% realization of cost and zero on your dummy item. The result when you receive the work order is your reworked item being put back into inventory with its cost reflecting its original cost plus your rework costs.



Hope this helps.