The reject costs are written at the time of the record was created; it is stated in the details section of the reject record.
This is completed because the reject needs to reflect the costs incurred at the time the reject was recorded and reflect an accurate snapshot of the cost for the reject.
we cannot imply that further alterations to the job costing to be applied to the reject later on because those costs (such as component issues) have not been applied at the time and therefore cannot be included.
For example if an item was rejected before an expensive component was issued, the expensive component is spared and not added to the reject because it wasn't consumed by being issued to the works order, therefore, it is not included in the cost of the reject.
If the expensive component was then later on issued to the works order the reject cost is not updated because the issue had occurred after the reject record was created.
If a new reject is created then a new snapshot is used and the relevant costs are included.
If we then check the details section it describes the costs attributed at the time of the reject record and how the reject cost is reached. For example:
Total costs incurred (at the time) = £590.33
Total quantity for the works order (at the time) = 13
Therefore, unit cost = £45.41
This unit cost is the costs incurred on the works order up to the point the reject was created.
Now that we know how much value was attributed to each works order quantity we can calculate the scrap cost:
Quantity scrapped = 6
Reject cost = Unit cost * Quantity Scrapped
45.41 * 6 = £272.46
The costs incurred by any scrap are included in the Job Costings screens / reports - but are not shown separately. Our development team will need to re-write Job Costings to show scrap costs separately and a change request has been submitted. Our product manager is assessing this idea for future versions of FactoryMaster.
If you require this functionality urgently, our consultants can create a Crystal report to extract the cost of scrap from a view. Please raise a new case online and reference the title of this article.