Rework Processing (Work-in-Process)

Addresses the work performed to correct defects in a product after it has been manufactured. The cost of rework is interpreted as a variance.

Process Flow

This scenario focuses on a rework process within production. All required rework activities are related to the parent production order. For this reason, errors are recognized and corrections initiated, such as insertion of a rework operation within the same production order. The additional rework operation is confirmed and settled within the original production order, causing production variances within controlling and price differences for the dedicated product.

Key Points