> Work in Progress Introduction

Work in Progress Introduction

The Work in Progress module enables you to accurately control costs of work orders currently in progress.

Material usage and labor can be posted in real time and in batch mode. It also enables variance reporting to be produced between estimated costs and actual costs of each job. Work orders may be added for stocked items (with a bill of materials), stocked items without a bill of materials or non-stocked items.

These work orders can create a bill of jobs for all relevant sub-assemblies down the BOM chain. Labor transactions can be posted through kit issues, manually or imported into the system from a data collection interface. Material allocations can be issued to a job through kit issues or manually and optionally allow for the substitution of a material allocation when performing kit issues.

Configuring Work in Progress

This task outlines the procedures you should follow to set up your Work in Progress module before you begin to process transactions.

Some of these steps are optional and depend on how you intend implementing this module.

Implementing Work in Progress Inspection is described separately in the WIP Inspection Introduction.

  1. Navigate to the Set Key Information program.

    Indicate the properties and numbering method you require for your Work in Progress keys.

  2. Navigate to the General Ledger Codes program.

    Define the General Ledger control accounts for the Work in Progress module.

    If you want to integrate Work in Progress to the General Ledger, then you require the following account codes in the General Ledger:

    • Work in Progress control account

    • Work in Progress variance account

    • Automatically cleared variance account

    • WIP inspection account, if you want to inspect made-in items before receipting them into Inventory.

    In addition to the control accounts, you need to define the General Ledger codes to which you want to apportion productive and non-productive costs against each work center, and the labor ledger code for the cost of labor postings for subcontract operations.

  3. Use the Warehouses program to define the warehouses you require for raw materials, floorstock, sub assemblies and finished goods.

  4. Work in Progress Setup

    Define the Configuration, Preferences, Financial Periods and History setup options you require for Work in Progress.

  5. General Ledger Integration

    1. Navigate to the General Ledger Integration program and indicate the following:

      • the Integration level you require for Work in Progress.
      • the level of automation for creating and posting General Ledger journals for Work in Progress.
      • the point at which you want to force entry of analysis information, if you are using the General Ledger analysis facility.

    2. Navigate to the General Ledger Integration program and indicate the General Ledger control accounts for Work in Progress.

  6. Use the Product Classes program to define a product class for WIP part billings.

  7. Use the Job Classification program to define the job classifications for the different types of jobs that you typically process.

  8. Use the Cost Centers program to define your cost centers and assign default information to use for a group of work centers.

  9. Use the Work Centers program to define your work centers.

  10. Use the Machines program to define the machines you use in your factory. When posting labor to a job, you can specify the machine against which postings must be recorded.

  11. Use the Employees program to add details of employees and their labor rates. This enables you to post labor to a job at the actual employee labor rates instead of at the rate held against the work center.

  12. Use the Non-productive Codes program to define the non-productive codes required and to assign the ledger codes to which the value of non-productive time must be apportioned during labor posting.

  13. Use the Scrap Reasons program to define the coded reasons that can be assigned to the scrapping of material during labor posting.

  14. Use the Employee Time Unit of Measure program to define unit of measure conversion factors between employee rate times and work center rate times.

  15. Use the WIP Labor Posting Format Maintenance program to define parameters according to which to access and sequence fields for posting within the Labor Posting program.

  16. Use the Factory Documentation Format program to define the document formats for printing your factory documentation using the Factory Documentation program.

    This step is only required if you want to print factory documentation.

  17. Use the Stock Codes program to define the stock items used within the Work in Progress module. These include stock codes for finished items, raw materials and floorstock.

  18. Optionally define passwords against WIP activities using the Password Definition program.

    Passwords applicable to WIP are:

    • WIP Posting to a previous month

    • WIP Completing a job if outstanding po's/materials/operations

    • WIP Override on gross profit check in Part Billings

    • WIP Accept into stock as alternate stock code

    • WIP Deleting a job

  19. Optionally disable the WIP activities that can be performed by each operator using the Operators program.

    These include:

    • WIP Allow over-receipts for jobs

    • WIP Non-stock allocation allow zero cost

    • WIP Allow over-issue for allocations

    • WIP Allow rev/rel change on job change

    • WIP Changing reserved lots/serials for parent

    • WIP Changing reserved lots/serials for allocation

    • WIP Allow view of labor rates

    • WIP Lots and serials tracking override

    • WIP Set material allocation as complete

Work in Progress Period End processing

The following sections outline the procedures that you should follow to ensure that the integrity of the Work in Progress module system is maintained.

Pre-month end reporting

  1. Ensure your daily procedures for Work in Progress are complete, including all required job postings.

  2. If the option: Create GL journal is not enabled for Work in Progress (General Ledger Integration) then run the WIP Part Billings GL Integration, WIP Labor GL Integration and Inventory GL Integration programs to ensure that all the General Ledger journals for transactions processed in the Work in Progress module are created.

  3. If the option: Post GL journal is not enabled for Work in Progress (General Ledger Integration) then use the GL Journal Entry or GL Post Multiple Normal Journals program to post the General Ledger journals for Work in Progress into the General Ledger.

  4. Print a Work in Progress balance report using the Balance function of the WIP Period End program.

  5. Print the WIP Valuation report for the current month.

  6. Check that the total Work in Progress Period end Balance amount agrees with the sum of the Work in Progress control account(s) in the General Ledger.

    Ensure that the balance in the Work in Progress control account(s) in the General Ledger balance to the total of the WIP Valuation report and to the Work in Progress resulting balance total on the Work in Progress balance report from the WIP Period End program.

    Resolve any discrepancies before continuing.

  7. Optionally reprint the WIP Part Billings Journal, WIP Labor Journal and Inventory Journal Report reports for the month for audit trail purposes. These reports can be saved in PDF format.

  8. Optionally reprint the WIP Part Billings Distribution, WIP Labor Distribution and Inventory Distribution Report reports for the month for audit trail purposes. These reports can be saved in PDF format.

  9. Print the Job Variance report.

  10. Print the WIP Detail report for all jobs.

  11. Print a Work in Progress balance report using the Balance function of the WIP Period End program.

  12. Print the Material Scrap Analysis report. Unless scrap analysis records are retained indefinitely (Work In Progress Setup) they are deleted according to the date specified when running any function of the WIP Period End program that includes a Purge option.

  13. Print the Non-Productive Labor Analysis report. Unless non-productive analysis records are retained indefinitely (Work In Progress Setup) they are deleted according to the date specified when running any function of the WIP Period End program that includes a Purge option.

  14. Print the Employee Efficiency report for the current month. The report indicates the utilization of the resource and its efficiency and when run at month end, the lost time for the month.

  15. Optionally print the following reports as required:

    • Machine Efficiency

    • Work Center Efficiency

    • WIP Job Amendment Journals Report

Month end close

[Note]

It is strongly recommended that you take a backup of your data before processing a Month end, a Year end, or a Purge.

After you have completed the pre-month end reporting process:

  1. Select the Month end only or Month end and purge option from the WIP Period End program to close off the current Work in Progress period and to enable you to process transactions for the following period.

  2. Indicate the After processing completed options you require.

  3. Select Start Processing.

  4. Check the final page of the report produced to ensure that the month end was completed without errors.

  5. Run the WIP at a Glance program and check the Posting period information and check the Posting period information to verify that the month number now reflects the new month.

Year end

The year end procedure is similar to the month end procedure except that it can only be processed in the final accounting period of your financial year. The year end process transfers current year information to previous year and sets the current year-to-date information to zero.

[Note]

It is strongly recommended that you take a backup of your data before processing a Year end.

  1. Ensure that the pre-month end reporting procedure is completed.

  2. Select the Year end function of the WIP Period End program to close off the final Work in Progress period of the financial year and to enable you to process transactions for the first period of the following financial year.

  3. Indicate the After processing completed options you require.

  4. Select Start Processing.

  5. Check the final page of the report produced to ensure that the year end was completed without errors.

  6. Run the WIP at a Glance program and check the Posting period information and check the Posting period information to verify that the month number now reflects the first month of your new financial year.