A manufacturing company uses discreet manufacturing to make skateboards.
Production order picking lists are manually posted after finished goods are reported as finished.
A production order has six picking lists posted.
The quantities on the picking lists do not match any of the reported or finished quantities.
This causes an inventory error for the raw materials.
All raw material transactions must be tracked on production order and reconciled.
You need to process a single picking list for each production order.
What should you do first?
Click on the arrows to vote for the correct answer
A. B. C. D.C.
The scenario describes a situation where a manufacturing company is using a discreet manufacturing process to make skateboards. The company faces an inventory error due to the picking lists that do not match any of the reported or finished quantities. This has led to an inventory error for the raw materials, and all raw material transactions need to be tracked on production orders and reconciled. The task at hand is to process a single picking list for each production order, and the question is what should be done first.
Option A suggests creating a movement journal and selecting the proper account for production postings to reconcile the inventory that was posted in error. This option does not address the issue of processing a single picking list for each production order, which is the main task. Therefore, Option A can be eliminated as a solution to the problem at hand.
Option B suggests deleting the six posted picking list journals. This option may seem like a quick solution to the problem, but it is not advisable as it could lead to further errors and inconsistencies in the inventory. Additionally, this option does not address the task at hand, which is to process a single picking list for each production order. Therefore, Option B can be eliminated as a solution to the problem.
Option C suggests creating a production picking list and selecting the Full reversal option when creating lines. This option seems like a viable solution as it directly addresses the issue of processing a single picking list for each production order. By selecting the Full reversal option, the picking list quantities will be reversed, and a new picking list with corrected quantities can be created. This option also ensures that all raw material transactions are tracked on production orders and reconciled. Therefore, Option C is the correct solution to the problem at hand.
Option D suggests creating a counting journal to reconcile the inventory that was posted in error. Although this option may be necessary in some cases, it does not directly address the issue of processing a single picking list for each production order. Therefore, Option D can be eliminated as a solution to the problem.
In conclusion, the correct solution to the problem of processing a single picking list for each production order is to select Option C, which involves creating a production picking list and selecting the Full reversal option when creating lines. This will ensure that the picking list quantities are corrected, and all raw material transactions are tracked on production orders and reconciled.