7128723, 242 PM Document 1510982.1 Copyright(c) 2023, Oracle Al rlghts reserved, race Confidential E1: 30A: R30837 WIP Revaluation for Standard Costing (Doc ID 1510992.1) In this Document Purpose Overview, Scope Details How it Works Prerequisites Setup Frozen Standard Update (30835) WIP Revaluation (R30837) Data Selection Journal Entries How to Run a Sample WIP Reval Test Full Example Reminders Enhancement Requests References JD Edwards EnterpriseOne Shop Floor Control - Version 8.9 and later JD Edwards EnterpriseOne Product Data Management - Version 8.9 and later Information in this document applies to any platform. Overview The WIP Revaluation program (R30837) can be run for standard costed items in discrete, process and configured work orders and should be called from Item Cost Component - Frozen Update (R30835). For standard costed items, WIP Reval was designed to be called from the Frozen Standard Update (R30835) only. The standalone version of R30837 was designed for only Actual Cost Work Orders, as well as calling R30837 from Variance Accounting, R31804. Note: Flex Accounting from R30837 is NOT possible, and this functions as designed. R30837 will not look for a Cost in F105, or update labor when Frozen Work Center Rates change. The purpose of work-in-process (WIP) revaluation is to revalue the production costs for all open work orders in the Production Cost table (F3102), based on the latest item cost. The report displays any differences between the original work-in-process values and the new WAP values. Set processing options to create WIP Revaluation journal entries in the Account Ledger table (F0911) to see differences between the old and the new WIP values. The system will supply the default work order number in the Subledger fleld in the F0911 table. The WIP Revaluation program does not revalue on-hand inventory and cannot be performed for closed work orders. Closed work orders are characterized by a value of 3 for the Variance Flag (PPFG) field in the Work Order Master table (F4801). If standard costing is used, performing an automated WIP revaluation ensures that work-in-process inventory always reflects ‘any updates to component and labor costs and eliminates the variances that are generated by cost changes in the middle of a htpsssuppor oracle. comlepmosaces/DocumentDisplay?_adi ct-stats=on'xidzib_1688id=1510092.1 197128723, 242 PM Document 1510982.1 work order life-cycle. It also makes manual journal entries for WIP revaluation unnecessary. This paper is intended as a supplement to and expands on topics covered in JD Edwards EnterpriseOne Product Costing/Mfaq Accounting = Implementation Guide for release 9.1 and above. The focus is on Standard Costing only. Refer to E1: 30A: R30837 WIP Revaluation / Work In Process Reval for Standard Cost FAQ Document 1358954. 30837 Troubleshooting WIP Revaluation Document 845928.1 and E1: 30A: How it Works The cost of a standard costed item can be changed by Simulating (R30812) and Freezing (R30835) the costs. R30835, changes the Production Cost (P30026/F30026) cost and revalues only on-hand inventory. The Production Cost Inquiry (P31022/F3102) costs of all open work orders will reflect the old costs of the work order item, so when the cost of an item changes, and it has been issued to a work order (Work in Process or WIP), there is a difference between the production costs of the work order using that item (old cost) and the item cost (F4105) itself, which is based on the changed cost (new cost), The value of WIP is incorrectly valued on the Balance Sheet and variances may be generated requiring manual journal entries, to reconcile the differences. The R30837 addresses the problem of WIP revaluation when the costs of the component items and work center rates have been changed. R30837 is only triggered when R30835 is run in final mode, also running R30837 in final mode. When invoked from Frozen Cost Update the WIP Revaluation will revalue only those work orders involving the items whose costs have changed via Frozen Cost Update. If there are any errors in the R30835, the R30837 will not be invoked. This was reported in ‘Bug_19365203 (ANY ERROR IN R30835 PREVENTS CALL TO R30837) and closed to status 92 - closed, not a bug. If the Frozen Update UBE is run in final mode the F0911 end doc will be called to commit the G/L transactions to the account Ledger table using the AAI table 4134 Inventory and AAI table 4136 Expense or COGS (cost of goods sold). When the WIP Revaluation UBE is executed, it will perform AAI processing for the debit with the use of AAI table 3120 WIP Account and credit AAI table 4136 Expense or COGS for the G/L transactions, ‘The Frozen Update updates the items that are in Inventory and the WIP Revaluation updates the Work Order(s) that was processed and its future completions. Journal entries will be written for the change in value of work-in-process to reflect the new cost in the Balance Sheet. The Production Costs (P31022/F3102) for the work orders for which the R30837 has been run will be updated with the latest changed costs in the P30026/F30026 (Work with Cost Components) to avoid generating artificial variances by Variance ‘Accounting (R31804) due the change in WIP (Actual - Completed). WIP does not eliminate variances that already exist in the F3102, such as true Actual variances due to over-Issue of material. It does not eliminate Engineering variances caused by no frozen costs at the time the work order was generated. It does not re-write costs that do nat exist. 30837 determines the change in the value of work-in-process which is the difference between the new worksin-process compared to the original (old) work-in-process and writes adjustments for the change. For example: {If work order components have been issued worth $100 and completions of $50 have been recorded on the work order, the old WIP is calculated as: Actual Completed WIP= 100 - 50 = 50 If the Frozen Cost Update (R30835) is run, making the new value of material issued $200 and completions are now $100, the new WIP value is calculated a htpsssuppor oracle. comlepmosaces/DocumentDisplay?_adi ct-stats=on'xidzib_1688id=1510092.1 297128723, 242 PM Document 1510982.1 ‘Actual Completed wii 200 - 100 = 100 ‘The WIP Revaluation program (R30837) calculates the change in the value of the work-in-process by calculating the difference between new WIP and old WIP. New WIP Old WIP Change in value of WIP= 100 - 50 50 ‘The work order production cost in the F3102 is updated with the new values, and a journal entry is written to work-in- Process to account for the $50 change in value. The R30837 revalues and updates the production costs in F3102 for open work orders, It works in the same way for Work Center Rates changes for hours on a work order. Prerequisites 1. Run Manufacturing Accounting (R31802A) to clear unaccounted units before implementing any cost changes and to update the F3102 file with the latest transactions, 2. Run Simulated Roll Up (R30812) and Frozen Update (R30835) to reflect cost changes in the Cost Component program (P3026). WIP Reval (R30837) is called fram the R30835 by setting the processing option on the Process tab, #5, WIP Revaluation. The choices are Blank = Do not Invoke WIP Revaluation, 1 = Invoke WIP Revaluation for Work Orders, 2 Invoke WIP Revaluation for Lean Manufacturing, Set up 30837 uses AAIs 3120, Work in Progress, and 4136, Expense or COGS, to write adjusting journal entries to the Work in Process account. Distribution/Manufacturing - AAI Values (F4095) should be set up for the 18 (default) Document Type before running WIP revaluation, Refer to E1: 31A: Manufacturing Accounting AAI Setup Document 627297,1. If the processing option to create journal entries is blank, manual journal entries should be written so that the accounts reflect the correct information of the changed WIP, Frozen Standard Update (R30835) Before running WIP Reval from R30835, make sure that all work orders that are considered fully closed and should not be included in the revaluation run are set to PPFG = 3 in F4801. WIP Reval uses the PPFG to find open work orders to process, WIP Reval runs over work orders where the Variance Flag PPFG (located in the F4801) is not equal to a 3. Therefore, all work orders containing a PPFG of blank, 1 or 2, are included in WIP Reval. The Frozen Standard Update UBE run in final mode can invoke the R30837 for items with standard costing based on the processing options. ‘The R30837 revalues the costs of those work orders whose costs have changed via the frozen update as well as parent work orders involving the same Item. The R30837 inherits the mode (proof or final) from Frozen update and overwrites the mode entered in the WIP Revaluation Pracessing options. Update the following processing options, from R30835, Process Tab, to invoke WIP revaluation, refer to E1: 30A: R30837 WIP Revaluation for Standard Costing () htpsssuppor oracle. comlepmosaces/DocumentDisplay?_adi ct-stats=on'xidzib_1688id=1510092.1 a97128723, 242 PM Document 1510982.1 Processing Options 2 Cancel i SEM oocescno CET ST ST 1 Update cass f lank =Proof Mode 1 =Final Node 2, Single Level Blank= Complete Update 1 =Singe Level Undete [Link] Work Cantor Rates lank =Da Not Update = Updates al res in all verkcenters across allcorspanies and allbranch plants Updates all work centers asrocisted wh ems being Frocen 4 Use Fey Accounting flan yo Not Use Flex Accourting 1 = Use Flex Aeccunting 5, WIP Revaluatien Blank = Dart Invoke WIP Revaluetion 1 = Invoke WIP Revaluation For Werk Ordre Invake WIP Revaluation For Leen Manufackurng Use Cache or Work Fle for Calculations Blank = Cache L=Werk Fle The Update Work Center Rates processing option must be tured on if work center rates have changed and these changed rates should be used in the calculation of new production costs and the new Work in Process. 30835 will set the CCFL flag on changed items. When the R30837 is run, the flag will be cleared WIP Revaluation (R30837) For standard costing, only call the WIP Revaluation (R30837) from the Frozen Update (R30835). All other WIP Revaluation ‘options are for actual costing and are not applicable to this document. Data Selection Data Selection in R30837 has been omitted because the UBE should be run from Frozen Update (R30835), for Standard Cost items. The Data Selection has purposely been omitted from R30837. When running WIP Reval for standard costing, the data selection comes from the cache built by the R30835. Material cost changes start with the components in the cache. A search runs over the F3111 to find all of the lines for the component. From the F311, R30837 finds the component parent item, With the component parent item information, all associated work order numbers are found, and open work orders are loaded into cache. A similar process is called on the routing side when the 30835 processing option is set to update Work Center Rates, 30837 will NOT update the F3102 for a Parent/Work Order if F4801 Variance Flag PPFG = 3. This flag set to "3" designates that the work order Is closed. WIP Reval does not reference back to the F3002 BOM File for Current Amounts in the F3102. Therefore, if the parts list is changed via the P3111 Part List, or by way of P31113 Inventory Issues, re-simulating and freezing and calling R30837 WIP htpsssuppor oracle. comlepmosaces/DocumentDisplay?_adi ct-state=on'xddzio_1688id=1510092.1 497128723, 242 PM Document 1510982.1 Reval, regardless if the components cost has changed or not, can cause Engineering Variances when Planned would have been expected. Journal Entries 230837 will rewrite all the columns in the F3102 with new costs, including the Actual column (IM and IH) and Completed column (IC). An IB journal entry will be written for the change in WIP (F3102 Actual - Completed). The GL Work in Process account will balance to the F3102, but now in total only. If the F3102 is used heavily for reporting, running WIP Reval and re-writing this file may not be a good option. When costs change as a result of a change in Component cost or Work Center Rates, and the simulate and freeze is run, there will be a new Cost Component (P30026) frozen cost for the parent item. There will be new costs (30026) for the components and/or the new work center rates. When WIP Reval runs, it will find the work orders for the items with changed cost to analyze and update the F3102 as follows: ‘= The Standard cost column is populated by taking work order Quantity * Parent F30026. Cost will be adjusted for the cost change (old F3102 new F3102) * the F3102 work order quantity. + The Completed cost column is populated by taking work order completed Quantity * Parent F30026, Cost will be adjusted for the cost change (old F3102 new F3102) * the F3102 Completed Quantity + Current, Planned, and Actual costs are a result of the sum of the Components * the Component F30026 cost, plus the routing hours * the frozen Work Center Rates. Current, Planned, and Actual costs will be adjusted for the cost changes (old F3102. new F3102) in the components and work center rates * F3102 quantities. IB journal entries are only written when there is a change in the WIP value, meaning when there is a difference between Old F3102 (Actual (Completed + Scrap)) and New F3102 (Actual (Completed + Scrap)) How to Run a Sample WIP Reval Test Here is a step by step process to test the WIP Revaluation process. Users are encouraged to test prior to implementation to gain a full understanding of the process and outputs to expect 1, Add a new parent and some component items for this test 2, Simulate (R30812) and Freeze (R30835) - do not call the R30837 3, Add three work orders for the new parent item ‘Work Order 1 - Attach parts list and routing only Work Order 2 - Take work order through material issues, run manufacturing accounting Work Order 3 - Take work order through material issues, complete half WO quantity, run Manufacturing Accounting (R31802A) 4, Review all work orders using the Production Cost Inquiry (P31022) for Standard, Current, Planned, Actual, and Completed values Change cost of component items (08 cost type) Simulate FROM cost method 08 TO cost method 07 for the parent item exploding BOM Freeze (R30835), exploding the BOM Call R30837 from the R30835 Review all work orders (P31022) for changes to Standard, Current, Planned, Actual, and Completed Review 1B journal entries for correct values for changes to work in process Full Example Set up and resulting F3102 for Standard Cost Work Order before running R30837: 1. Frozen costs: AL - 10.00 BL - 1,00 htpsssuppor oracle. comlepmosaces/DocumentDisplay?_adi ct-stats=on'xidzib_1688id=1510092.1 597128123, 242 PM 3 - oot ca = 001 2, Work Center Rates Simulated | Frozen Direct Labor 1.00 1.00 Labor Variable O/H 1 ot Labor Fixed O/H o1 o1 Document 1510992.1 3. Entered a work order for the Standard Cost item for 100 units. 4, Ran Order Processing (R31410) on the work order and issued material for 100 units of component, each at $10. 5, Performed Hours and Qtys for 100 hours on the work order. 6. Completed 50 units of the parent, 7. Ran R31802A, resulting in the following costs in the F3102, Total WIP (Actual Completed + Scrapped) = $551.00. ‘Standard]|Standard |Current|| Current Planned || Planned Actual | Actual || Completed! | Completed Units || Amount | Units || Amount|| Units || Amount | Units | Amount | Units |) Amount pun || opar | cccu || ccca | pLUN || PLAT LUN) claT | cPUN |) CPaT AL 100 |} 1000.00} 100 ||1000.00]] 100 ||1000.00} so |1000.00] 50 500.00 Bi 100 |} 100.00) 199 |! i499) 19 || so9,00 |) 19°) r00.00 | 5° 50.00 a too || 1.00 | 100 || 1.00 | 100 |) 1.00 | 100) 1.00 | 50 50 a 100 |} 1.00 | 100 || 1.00 |) 100 || 1.00 ) 100) 1.00 50 50 AL 100 ||1000.00} 100 ||1000.00 | 100 | 1000.00 ]Component NEXT: 1, Change the Component cost to $20. 2. Change the Work Center rates to $2 and $.02. “The new frozen costs of the item will AL = 20.00 Bi - 2.00 htpsssuppor oracle. comlepmosaces/DocumentDisplay?_adi ct-stats=on'xidzib_1688id=1510092.17128123, 242 PM G. Document 1510992.1 0.02 ca = 0.02 3. Run Simulated Roll Up (R30812) and Frozen Update (R30835) for the parent item again with the processing option to freeze the work center rates turned on and calling WIP revaluation (R30837). After running the R30837: ‘The R30837 changed the F3102 costs to the following. Total WIP (Actual — Completed + Scrapped) = $1102.00 ‘Standard| Standard |Current|) Current |/Planned| Planned ||Actual| Actual || Completed] Completed Units | Amount | Units | Amount || Units | Amount |) Units | Amount || Units | Amount opuN | oPaT || cccu |) cccA || PLUN | PLAT |cLUN) cLAT || CPUN | cPAT AL 100 | 2000.00|) 100 | 2000.00|) 100 | 2000.00) so 2000.00 50 1000.00 Bi 100 | 200,00 | 100 | 200.00 || 100 | 200.00 | 100 | 200.00} 50 100.00 a too | 200 || 100 | 200 | 100 | 200 || 100 | 200 50 1.00 ca 100 | 200 || 100 | 200 | 100 | 200 || 100 | 2,00 50 1.00 AL 100 | 2000.00)! 100 | 2000.00) 100 | 2000.00 ‘Component All the production costs were revalued according the changed work center rates and component costs. 30837 Output: ‘The R30837 report shows all the work orders that have a WIP variance. The old WIP and new WIP are shown with the WIP variance. The WIP variance can be due to changes in the component costs or changes in the work center rates or both. The following shows the old and new WIP from the example above. The WIP variance is the value of the journal entry written. YE Mote tar _— tan tor a oa ncaa no Pons —_ pr Cony Note: The work orders will not appear in the report output even though the F3102 costs of the work orders change unless there is a positive or negative change in the value for WIP (Actual - completed + scrapped) for that particular work order. The htpsssuppor oracle. comlepmosaces/DocumentDisplay?_adi ct-stats=on'xidzib_1688id=1510092.1 7197128723, 242 PM Document 1510982.1 work orders will only appear when there is a change in WIP as a result of the revaluation. 30837 example: {If work order components have been issued worth $100 and completions of $100 have been recorded on the work order, the old WIP is calculated as: Actual Completed WIP= 100 - 100 = 0 If Frozen Cost Update (R30835) is run, making the new value of material issued $200 and completions are now $200, the new WIP value is calculated as: ‘Actual Completed WiP= 200 - 200 = 0 ‘The WIP Revaluation program (R30837) calculates the change in the value of the work in process by calculating the difference between new WIP and old WIP. New WIP Old WIP Change in value of WIP= 0-0 = 0 The work order F3102 is updated with the new values but no journal entry is written to Work in Process because there was no change in value. Reminders 1, For standard costing, call the WIP Revaluation (R30837) from the Frozen Update (R30835). 2. R30837 will rewrite all the columns in the F3102 with new costs, including the Actual column (IM and IH) and Completed column (IC). An 1B journal entry will be written for the change in WIP (F3102 Actual - Completed), ‘The GL Work in Process account will balance to the F3102, but now in total only. If the F3102 is used heavily for reporting, running WIP Reval and re-writing this file may not be a good option for every company. 3. Before running WIP Reval from R30835, make sure that all work orders at a closed status are also PPFG WIP Reval uses the PPFG to find open work orders to process. 4. Before running R30835, always make sure that Manufacturing Accounting (R31802A) has been run to clear all unaccounted units. 5. R30835 will set the CCFL flag on changed items. When you run R30837, the flag will be cleared. in F4801. Enhancement Requests ‘Bug 17285174; R30837 WIP REVAL AND STANDARD COST ZERO Since the WIP revaluation program is designed to update the F3102 to the latest standard cost, it should work whenever there is a new standard cost for that item and whenever R30835/R30837 is run to update the standard cost. This enhancement is available in the ESU with the following bug: ‘Bug 34801009 - MANUFACTURING ACCOUNTING ENHANCEMENTS 21346793 AND 17285174 Units in the Production Cost table (F3102) will now be converted to the Component Unit of Measure defined in the Item Master even if the item issued in different UOM's. Prior to this change, when the same component was issued to a work order with multiple units of measure, quantities were summed without respect to the UOMs used. Changes are done in two major caches: 83101630 (F3102 Variance Cache) and B3100440(Production Cost Cache) to update units in F3102 for component item in ‘Component UOM. These changes resolve the reported issue. htpsssuppor oracle. comlepmosaces/DocumentDisplay?_adi ct-stats=on'xidzib_1688id=1510092.1 897128723, 242 PM Document 1510982.1 ‘Bug 16785420: THE CURRENT AMOUNT OF 81 IN F3102 IS BLANK If a quantity or date is being changed on the work order and R30835 Frozen Cost Update is run calling WIP Revaluation program (R30837), B1 Current Amount is cleared off. Expectation: Current B1 Amount should not be cleared by R30837. Workaround: Rerun R31410 immediately after making changes to work order. ‘Bug 13370720: R30835: RUNNING 24/7 CAUSES INTEGRITY ISSUE WITH UNACCOUNTED UNITS FOR IC Unaccounted Amounts need to be captured and stored to allow R31802A to be written for the same value as the original Cardex IC transaction. To discuss this information further with Oracle experts and industry peers, we encourage you to review, join or start a discussion in the E1 Manufacturing Community, ‘To look at upcoming or archived Advisor Webcasts please see the Advisor Webcast JD Edwards EnterpriseOne Schedule Document 1450327.1 if your topic is not currently scheduled please suggest it. Didnt find what you are looking for? htpsssuppor oracle. comlepmosaces/DocumentDisplay?_adi ct-stats=on'xidzib_1688id=1510092.1 99