How to correct a bad component cost within a Work order

KB533

Overview

When a start or finish action is performed on a Work order, the cost of the Work order is calculated using the kit item’s Bill of materials. This means that if the cost of a component for the kit has been entered incorrectly (e.g. due to the incorrect UOM being entered at the receive stage), the cost of the items produced by the Work order will also be incorrect.

To amend the cost of goods that have been built by the Work order, you will need to return the components back into stock, correct their cost, then restart the Work order.

If the item has already been dispatched, you will first need to edit the Dispatch and make the Dispatch qty zero. For more information regarding this process, please see How to adjust a work order for an item that has been dispatched

Correcting bad component costs

  1. Navigate to the relevant Work order’s Work order actions tab.
  2. Select Remove last action until you have removed all actions up to and including the earliest Started action.

  1. Navigate to the Inventory form for the incorrectly costed items.
  2. From the Inventory form, navigate to Action > Stock revaluation and perform a Stock revaluation to amend the incorrect costs.
    1. For more information regarding how to perform a Stock revaluation, please see Stock adjustment & revaluation.

  1. Return to the Work order and re-perform the Start and Finish actions.

Additional Notes

  • You cannot perform a Stock revaluation before un-starting the Work order. When you un-start the Work order, the items will be returned to stock at the cost they were removed. If you have already performed the Stock revaluation, this will cause the Avg Cost ($) to recalculate and add error back into your costs.
  • When a start action is performed, the calculated cost is added to the BOM WIP field.
  • When a finish action is performed, the calculated cost is removed from the BOM WIP field and added to the BOM cost field.

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Last edit: 04/11/25