In this task your planners and work center supervisors will close finished jobs.
Education:
Shop Control Guide - Closing Finished Jobs
Screen Help - Job Control Panel
Video - Shop Control Guideline Job Reopen
Training Task:
Close all finished jobs.
Job Close Guidelines
DBA is a Work in Process Accounting System
As you issue materials, subcontract services and labor to a job it accumulates in Work in Process. When you receipt the finished goods output into inventory it will debit Inventory and credit Work in Process. Your final receipt cost in the Job Receipt screen can either be at Job Estimate Cost or if your input costs are completely reported you can use the Final Receipt Balancing Cost (Actual Job Cost Basis).
When the Job is Closed, DBA will reconcile all of your input costs versus your job receipt output values and post the difference to WIP Adjustments. This ensures that your Inventory and Work in Process accounts are always up to date.
Jobs must be Closed in a timely manner to auto-reconcile WIP
Changing a Job from FINISHED to CLOSED (in Job Control Panel - Close Jobs screen) is a required step to auto-reconcile your Work in Process account. When the job is closed, any difference between total job receipt cost and actual job cost is posted to your WIP Adjustments account. A common mistake customers make is to not Close jobs that have large variance values. The WIP Adjustment postings are required to balance you your overall cost of sales in the system. You must always Close Jobs and you should aspire to closing Jobs as close to your Finish date as possible.
Special Warning Regarding Actual Hours Routing Sequences
Our experience has shown that it is very difficult to perform actual hours in most manufacturing environments. The reality of most shops are that once an item is finished it is shipped out as soon as possible regardless of whether all of the costing information has been submitted. It is very easy to make errors or omissions in labor entry that can have a very consequential effect on your cost of sales accounts and make your income statement a challenge to interpret. Since the product is likely already out the door, there is not an opportunity to fix the costs after the fact. We strongly recommend Standard hours completions Routings for most companies.
Never reopen closed jobs for cost correction
Never reopen a job to correct job costs by reversing and redoing transactions. Job cost discrepancies have already been posted to variance accounts and it is not possible to retroactively change receipt costs and apply those changes to subsequent issue and picking transactions.
