We are currently facing an issue where our WIP is being driven to a negative balance that appears to be driven by partially completed shop orders. As customer demand fluctuates, our production planning schedules are adjusted based on the priority of the newer orders/jobs received. Orders currently in process may be paused to start the newer, higher priority orders. Because of this, we have many shop orders which are processed partially, have operations reported partially and have shop order receipts received partially into finished goods. At any given time, there are a large number of shop orders found in partially completed status.The partially completed shop orders are receiving the full cost of material and labor into finished goods instead of a proportionate amount of material and labor. As a result, it appears that more cost is being taken out of WIP than has been added to it. For example,A 500 piece shop order is partially completed with 300 pieces. Expecting only the following t
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