Work-in-Process Work Order setup
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 from its source Warehouse (both in Qty and Value) 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 finished goods Warehouse.
Setup AcctVantage for WIP Work Orders
1. Warehouse Setup
Create (or designate) a Warehouse for each:
-
Components:
- The Warehouse from which BOM components will be drawn for the WO.
- BOM component inventory (quantity and value) resides here until the WO process is initiated.
- BOM component Inventory is added to Qty Reserved Work Order when the WO Status is changed to In Process.
-
Work in Process:
- The warehouse where the components will be assembled.
- BOM Component Inventory (quantity and value) will be transferred to the WIP Warehouse when the WO status is changed to Picked.
-
Finished Goods:
- 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.
CHECK OUT THIS ARTICLE for more info on how Inventory is reserved for Work Orders.
2. GL Account Setup
Create (or designate) a WIP Inventory Asset GL Account to ensure the best reporting at the GL level.
3. Product Class Setup
Enable each of the three Warehouses for each Product class.
Use the GL Accounts from Step 2 to enable each Product Class/Warehouse combination.
At minimum:
- BOM Components Product Class: Components Warehouse and Work in Process Warehouse must be enabled.
- Finished Goods Product Class: Work in Process Warehouse and Finished Goods Warehouse must be enabled.
There is no harm in enabling all three warehouses on each Product Class. This would actually be useful in the event components are sometimes received in the finished good warehouse or if the finished good needs to be transferred to the component warehouse.
The example below illustrates what the Finished Goods Product Class looks like with all three warehouses enabled.
4. System Configuration Setting
- Navigate to Administration ➤ System Configuration and 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 each setting to select from a list of your Warehouses).