Material Substitutions

Use Material issue transactions to record material substitutions when component items other than those originally planned are used. When a material substitution is entered, the commitment of the original component is relieved while the substitute item is issued, keeping your inventory records up to date. You can also enter a negative quantity issue to return items to inventory. This feature allows you to relieve excess material from a work order, or record the completion of a by-product.

When a material issue transaction is updated, the actual cost of the material issued is recorded against the work order. The actual cost for each inventory item is determined based on the valuation method assigned to the item. Additionally, the quantity available and the quantity required by work order in the Inventory file are reduced by the quantity issued. General ledger postings to the Work-in-Process and Inventory accounts are also generated.

For more information, see:

Material Issue Transactions

Completion Transactions

Account Maintenance