ISTech Support Forum

ISTech Support Forum
http://www.istechforum.com/YaBB.pl
Evo-ERP and DBA Classic >> Manufacturing >> Work in Process Summary Report
http://www.istechforum.com/YaBB.pl?num=1079041468

Message started by Kelloggs on 03/11/04 at 13:44:28

Title: Work in Process Summary Report
Post by Kelloggs on 03/11/04 at 13:44:28

Hi,

On the Work in Process Summary Report there is a column called “Net Wip”

Could anyone tell me what these amounts showing under this column stand for?

Thank You,

Kelloggs
???

Title: Re: Work in Process Summary Report
Post by Lynn Pantic on 03/11/04 at 17:10:20

It is the net balance in WIP for each work order - total cost into the work order minus finished production and WIP Variance coming out. For Closed Work Orders, it should be 0.

Title: Re: Work in Process Summary Report
Post by Karen Mason on 03/15/04 at 15:15:11

...although many of my work orders do not close properly and the net amount in the work order does not zero out when closing work orders where inventory is at zero.

Title: Re: Work in Process Summary Report
Post by lmk223a on 03/17/04 at 06:58:17

What method of inventory are you using? Average or FIFO? We use FIFO, and when the last entry is made to finished production for the work order, it is very important to answer "Y" to the DBA prompt "Is this the final entry to finished goods?" Because it is at this point that DBA no longer uses standard cost for valuing these items, but recalculates the value of these items to be the difference between Total Actual Cost in the work order and previous entries made at standard cost to date. This ensures that WIP variance is minimal, $0 or sometimes a penny or two when the work order is closed . Hope this helps.

Title: Re: Work in Process Summary Report
Post by Lynn Pantic on 03/17/04 at 07:44:46

That is important regardless of whether you are on FIFO or Average cost if you want the inventory to carry the actual WO cost. But even if you take all the finished goods out of the WO at standard cost, the WIP Variance posting should net the WIP to $0 when the WO is closed.

It is important, at least on the final receipt or in WO-J when closing the work order, to answer Y to the wuestion about rebuilding the summarized costs from the transaction detail to be sure the closing entry nets the WO to $0 WIP.

Title: Re: Work in Process Summary Report
Post by Karen Mason on 03/17/04 at 10:52:39

1) We are on average cost method
2) We always answer yes to rebuild summarized costs
3) Only the Work orders with -0- in inventory are the ones that the amounts don't close properly.
4) We are not talking pennies here. Each month I have a few thousand dollars to adjust because of this problem.
5) The WIP variance posting just does not happen when closing a work order that has no inventory to post against.