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.

1. Setup AcctVantage for WIP Work Orders

1.1. Warehouse Setup

Create (or designate) a Warehouse for each:

  1. Raw Materials (i.e. Components):
    • The Warehouse from which components should be drawn for the WO.
    • Inventory (quantity and value) reside here until the WO process is initiated.
  2. Work in Process (i.e. Production):
    • The Warehouse where the components will be assembled.
    • Inventory (quantity and value) will be transferred here when the WO status is changed to In Process.
  3. Finished Goods:
    • The Warehouse where the finished good Inventory will be stocked when the assembly is completed.
    • Inventory (quantity and value) will be transferred here when the WO status is changed to Picked.

You could use the same Warehouse for each step, but using separate ones allows for better reporting.

1.2. GL Account Setup

1.3. Product Class Setup

Enable each of the three Warehouses for each Product class.

You'll want to use the GL Accounts from Step 1.2 to enable each Product Class/Warehouse combination.

1.4. System Configuration Setting

  1. In Administration ➤ System Configuration, select Work Order from the drop-down menu.
  2. Enable the Use multiple warehouses option (double-click to set the Value to True).  
  3. 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

Create a new Work Order.

Note that the 3 warehouses on the Work Order can be changed prior to saving.