I am trying to reconcile my WIP account and can’t seem to figure it out. Does anyone know what the system does when you issue materials for a job? Does it move the materials from the bin they are in WIP or does it put them into another bin?
It looks to me that it moves them to the input bin for the resource group. But I don’t know if it still shows as that item in the stock status report. I have tried to find the logic in the application help but haven’t had much luck.
Appreciate any help that anyone has on this.
When the parts are issued to a job they will no longer appear on the stock status report. If everything is perfect, your work in process report should tie out to the total of you posted and unposted GL balance. Do you have a single WIP or multiple WIP accounts? The WIP accounts can be broken up by labor, burden, material, subcontract, material burden and rounding. They can also be split by product group.
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Thanks Carson. We only have one WIP account, wish we had known that you could break it up as it would have made it easier to reconcile.
You still can break it up (just for future transactions) by creating GL controls.
Here’s the general flow for us (we don’t track labor, or use resources)
- PO issued - No part or GL trans created
- Receipt of item from PO -
2a. Creates a PUR-STK part tran increasing QOH of item.
2b. That PUR-STK queues up Debit to Inventory (the credit is to AP system) - Material is issued to Job -
3a. Creates a STK-MTL part tran, decreasing QOH of item.
3b. That STK-MTL queues up Debit to WIP, and Credit to Inventory - Job is received to stock
4a. Creates a MFG-STK part tran, decreasing QOH of parent item.
4b. That MFG-STK queues up Debit to Inventory, and Credit to WIP
if #4 had been a ship from WIP, it would have been
- Job is shipped from WIP
4a. Creates a MFG-CUS part tran, no changes to any QOH.
4b. That MFG-CUS queues up Debit to COS, and Credit to WIP
I say “Queues up” because those transactions don’t actually create a GL transaction. It’s not until the Capture COS/WIP processi is run that all those “queued up” transactions actually create the GL transactions. These appear in the GL as “Periodic Posting Process”
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Important!!!
Changing or adding new GL controls can require some manual cleanup.
Say you want to have one Account for Raw Inventory (GL Acct# 1001-00-00). But you want another for certain parts that need to use GL Acct# 1005-00-00. You decide the Part Class is the best way to differentiate what parts use what GL. So you create a Part Class Alternate Inv, and add a GL control to it to use 1005-00-00 as the GL for Inventory.
You then change the Part Class of existing part XYZ-123 from blank to Alternate Inv.
The next time you process a receipt, the PUR-STK will debit 1005-00-00 instead of 1001-00-00
The next time you issue that material from inventory, it will credit1005-00-00 instead of 1001-00-00
But … Had there been any QOH of that part before the Part Class change, its value was still in 1001-00-00. Future issues of that material will not credit 1001-00-00.
The best order to change the part’s class is (after the class has been created and it’s GL controls set):
1.Qty Adj the existing QOH to zero.
2. Change the Part Class in Part Maint.
3. Qty Adj to get the QOH back to the same value it was before step 1. (use the same reason code as step 1).
Step 1 will credit 1001-00-00and debit a variance account (based on the reason codes GLC).
Step 3 will debit 1005-00-00, and credit the same variance account
Calvin,
Thank you. I am going to mess with it in Pilot and see how it works.
There are several Tech Reference guides that spell out the hierarchy for each transaction type. Give them a look over.