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Reversing Labor for Manufacturing Orders in Microsoft Dynamics GP

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Hi everyone!

We have seen some questions coming into support asking how to fix/reverse labor when it comes to Manufacturing orders.   Let’s say your company uses the Timecard Entry window to record labor.   We get asked if you can reverse labor in that window and if not how?   Below is more information on how to correct labor depending on the Status of the MO. 

OPEN MOs:
The answer is no, unfortunately you cannot reverse labor in the Timecard Entry window for Manufacturing.  There is not a "reversing" option in that window at this time.
 
However, what you can use is use the Data Collection window.  There is a reversing labor option in this window. 
 
1. Go to Transactions > Manufacturing > WIP > Data Collection. 
2. Mark the Reversing checkbox 
3. Enter the information for the MO, Employee etc and the time you want reversed out. 
4. Save the record and that will post another transaction to remove it out.  

After posting the change, you can check your Order Variance inquiry window and the MO Activity window to see another labor recorded with the reversed amount.
 
 
Closed MOs:
If the MO is closed its closed.  In this case there is nothing more that can be done against it in Manufacturing.  You may have to make adjustments via Inventory/Payroll/GL instead since you would be unable to use WIP windows to adjust a closed MO.  You also cannot go back and reopen a MO to adjust it.   The only option is to use the Adjust Cost window to adjust the Cost of the finished good (if this is a Perpetual item).  You can adjust down the cost of the finished good to 'back out' the labor cost.   
 
Inventory >> Utilities >> Adjust Costs
 
If this is a standard cost item, then you would not need to adjust the cost layers because when the finished good is consumed it will go out of inventory at the standard cost anyway even if there was wrong labor on the MO.  
 
NOTE:
  • When done this way, you may need to adjust Payroll manually so have your accountants check that.
  • And for General Ledger, if it was a standard cost item and this would cause a variance as a result, you could adjust the GL with a journal entry if needed. You would need to check with the accountant on what accounts would need to be adjusted if any. 

MORE INFO:
For adjusting Open MOs, if you receive an error in Data collection when trying to reverse and save, such as: 
 
  • The negative adjustment to this record could not be completed because the record was not found.
  • You cannot reverse this labor entry because the pay code entered does not match the originating labor transaction. 

In these cases, something isn't matching between the original labor entry and the one you are currently entering to reverse. 

Recommendation:  Look at the original Labor record and verify what that data looks like to ensure you are entering it EXACTLY the way it was. 

1.  Go to Inquiry > Manufacturing > WIP > DC Summary and pull up the MO that you recorded the Labor for.
2.  Find the labor record in the window.   Double click it to open the Data collection summary – direct labor window.
3.  Note all the fields below are the same information when entering the reversing entry in the Data Collection window.
 
  • Employee ID
  • Labor Code
  • Pay Code
  • On DT./Time
  • Off Dt./Time
Hope this information is helpful!  Have a great rest of the week!


Angela Ebensteiner | Sr. Technical Advisor | Microsoft Dynamics GP

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