WIP (Work In Process) Work Orders
The Work in Process (WIP) option for Work Orders allows you to easily track the quantity and value of components that are currently being used for production. When a Work Order (Assembly build) is initiated, component stock is drawn, both in Qty and Value, from its source Warehouse and moved to a WIP Warehouse where it can be reported on. When the Work Order is complete, components are completely removed from stock and the finished good is added to the designated sellable goods Warehouse.
CHECK OUT THIS ARTICLE for more info on how Inventory is reserved for Work Orders.
1. Setup AcctVantage for WIP Work Orders
1.1. Warehouse Setup
Create (or designate) a Warehouse for each:
Raw Materials (i.e. Components):
- The Warehouse from which components should be drawn for the WO.
- Component Inventory (quantity and value) resides here until the WO process is initiated.
- Component Inventory is added to Qty Reserved Work Order when the WO Status is changed to In Process.
Work in Process (i.e. Production):
- The Warehouse where the components will be assembled.
- Component Inventory (quantity and value) will be transferred to the WIP Warehouse when the WO status is changed to Picked.
- The Warehouse where the finished good Inventory will be stocked when the assembly is completed.
- Finished Good Inventory (quantity and value) will be transferred here when the WO status is changed to Complete/RTP.
1.2. GL Account Setup
Create (or designate) a WIP Inventory Asset GL Account to ensure the best reporting at the GL level.
1.3. Product Class Setup
You'll want to use the GL Accounts from Step 1.2 to enable each Product Class/Warehouse combination.
Product Class for Components needs to be enabled for the Components Warehouse and Production (WIP) Warehouse.
Product Class for Finished Goods needs to be enabled for the Production (WIP) Warehouse and Finished Goods Warehouse
1.4. System Configuration Setting
- In Administration ➤ System Configuration, select Work Order from the drop-down menu.
- Enable the Use multiple warehouses option (double-click to set the Value to True).
- Designate a Warehouse for each step of the manufacturing process (double-click to select each from a list of your Warehouses).
2. Process a Work Order
Note that the 3 warehouses on the Work Order can be changed prior to saving.