Cancel production orders that have consumption

Even when production doesn't go as planned, it's important to keep your inventory, cost, and financial records accurate. You can revert consumption or output transactions, return unused raw materials, and correct mistakes in your reported operations. For actual scrap occurrences, Business Central provides a process that lets you close orders and write off accumulated WIP.

When you post production transactions by mistake, you probably want to cancel (undo the transactions) and in some cases close the order. To do that, from the Released Production Order page, you can open the Item Ledger entries or Capacity Ledger entries pages and use the Reverse Production Order Transaction action.

  • For item ledger entries of the type Consumption, the action creates item journal lines of the type Consumption. For the lines, it copies values from the original transaction, uses the opposite sign in the Quantity field, applies to the original entry, and posts the item journal.
  • For item ledger entries of the types Output or Capacity, the action creates item journal lines of the type Output. For the lines, it copies values from original transaction, uses the opposite sign in the Quantity, Scrap Quantity, Setup Time, and Run time fields, applies to the original entry (only for item ledger entries), and posts the item journal. It also removes the Finished status from the related production routing line.

The Reverse Production Order Transaction action is only enabled for entries that are related to the production order. It uses the original posting date.

The action isn't supported under the following conditions:

  • If the output entry was already applied to an outbound transaction.
  • If consumption/output involve warehouse handling. Bins are supported.
  • Entries were created through subcontracting purchase orders. You can undo receipt in the Posted Purchase Receipt page.

Undo subcontracting receipts

You can undo subcontracting receipts before you post them as invoiced. To do so, go to the posted purchase receipt, select the line, and choose the Undo action. As a result, an identical line with an opposite sign in the Quantity field is created along with the capacity ledger entry. And, if the canceled receipt line is linked to the last routing operation, an item ledger entry of the type Output. You can't reverse a receipt if it's invoiced or if the production order is finished.

Note

Note:
If posting a subcontracting receipt caused consumption of components due to the flushing method, the consumption transactions aren't reverted. You must reverse them separately by using an output journal or the Reverse Production Order Transaction action.

After you revert and correct the records, you can change the status of the production order to Finished. The steps and settings are the same for a scenario where there is no output to allocate accumulated WIP because of actual scrap. To set this up, turn on the Finish Order Without Output toggle on the Manufacturing Setup page.

Note

Note:
After you turn on the toggle, you can't turn it off again. However, you can decide whether to write-off WIP for each order individually.

When you change the status of a released production order that has consumption or capacity ledger entries but no output, you can turn on the Allow Finishing Prod. Order with no output toggle on the Change production order status page.

The accumulated WIP amounts are posted to your inventory adjustment account. Remember to fill in the Inventory Adjustment Account on the General Posting Setup page for the entry defined by:

  • The Gen. Bus. Posting Group field on the production order.
  • The Gen. Prod. Posting Group field on the produced item.

Reopen a finished production order to make corrections

After you complete a production order and set its status to Finished, you might discover a mistake. For example, you might find that consumption is missing or the item tracking information is incorrect. To make sure that your inventory and cost transactions are correct, use the Reopen action on the Finished Production Orders page to make adjustments. However, to protect your data there are a few restrictions:

  • You can only reopen an order one time.
  • You can't reopen an order that has no output and cost was written off to an adjustment account.

Register Consumption and Output for One Released Production order line
Batch Post Production Consumption

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