There are two main reasons to reverse a manufacturing. First, it may be necessary to disassemble a product in order to sell one of its components. Second, a reverse manufacture can also be used to correct a mistake if too many or the wrong master items were manufactured.
Reversing a manufacture will decrease the inventory on-hand for the master item and increase the levels of the components. Each component is returned into stock with a cost equal to the original manufactured cost.
To reverse manufacture:
1: Locate the Manufacture entry in the Manufacture screen or from the Manufacture/Work Orders Ledger.
2: Select the Reverse Manufacture option from the Actions menu as shown in the following screen.
3: The following Reverse Manufacture window appears. Enter the Reversal Date and the Reversal Qty. The quantity entered must be a positive value and cannot exceed the original manufactured quantity.
4: Click the Reverse button to proceed or Cancel to abort. If the Reverse is selected, the following message will appear.
5: Click OK to open the following Reverse Manufacture window. The Item Detail tab shows the individual components and the amount that will be returned to inventory as a result of the reverse manufacturing process.
6: Clicking the Distribution tab will show a summary of the General Ledger accounts affected by the reverse manufacture. This is shown in the following screen:
7: If the entry listed is correct, click the checkmark to Proceed and complete the reverse manufacturing or click the icon to Cancel. The following OK message will appear when the process has been completed.
When the reverse manufacturing is complete, the components’ stock is automatically adjusted (increased), as is the on-hand level of the Master item (decreased). The Manufacture window will also display a new field for Reversed Qty, as shown in the following screen.
The reversal and quantity will also be recorded in the record info for the entry, as shown in the following screens.