The three cost completion methods for nonscrap completions that are calculated for the originally planned item code use one of the following calculation methods, the calculation methods are based on the percentage of the work order competed. For each completion transaction, the following calculation steps occur.
The quantity that is available to be completed is calculated using the following:
Quantity to Be Completed = Quantity Planned - Quantity Completed - Quantity Scrapped - Quantity Transferred.
The following calculation is performed to determine if this completion is the last completion on the work order when using the Actual or Lower of Planned or Actual Cost Completion method:
Quantity Planned - Quantity to Be Completed = Quantity Left to Be Completed
The Quantity Left to Be Completed is compared to zero and processing occurs based on the issue method and completion method for work order.
If the Quantity Left to Be Completed is greater than zero, this is not the last completion for the work order and final processing occurs as follows:
If the Work Order Has
This Processing Occurs
This Cost Completion Method
And This Issue Method
Actual
Automatic
Work Order % Complete = Completed Quantity / Quantity Planned
Actual
Backflush
Manual
100% of the Work in Process cost is applied to the completion and a zero balance is left in the Work In Process accrual account
Planned
Automatic
Backflush
Manual
Work Order % Complete = Completed Quantity / Quantity Planned
If the Quantity Left To Be Completed is equal to or less than zero (negative), this is the last completion for the work order. The cost completion method determines the formula calculated as follows:
If the Work Order Has This Cost Completion Method
This Processing Occurs
Planned
Work Order % Complete =
Completed Quantity / Quantity Planned
Actual
100% of the Work in Process cost is applied to the completion and a zero balance is left in the Work in Process accrual account
Lower of Planned or Actual
100% of the Work In Process cost is applied to the completion and a zero balance is left in the Work in Process accrual account
