WO-I  Enter Finished Production

Purpose of Program

Use this program to record the completion of finished goods.  Finished goods are put into inventory, from which they can be shipped to customers or used as subassemblies in other products.

You do not have to wait until the order is closed to report completed items.  It is not uncommon for production runs to take place over weeks and even months, during which finished goods are being produced.

As you make transactions you are given the choice of using the standard or actual cost to update the inventory average cost, which is then used to calculate the cost of goods sold when the item gets shipped, or is used as the cost that gets rolled up into a higher level assembly.

General Program Operation

Press <Enter> to accept the computer date or enter the date the finished goods were completed.  Enter the work order number or select a work order from a pop-up window by pressing the F2 key (or clicking on the Lookup button).

The parent part (the item being manufactured) and its description will be displayed.

You are then asked Do you wish to rebuild the summarized actual costs in WO-A from the detail transaction files?  The Actual cost column totals displayed in WO-A  Enter Work Orders are the total accumulated costs to date for the work order.  This program uses the TOTAL COST at the bottom of the column for making the balancing entry on the final quantity reported for this work order (see further below how the final quantity is handled).  If you answer Y, the program will rebuild the actual cost totals from the detail transaction files to insure complete cost accuracy.  In general it is only necessary to run the rebuild routine on the final quantity reported, although it does no harm whatsoever to run it for interim transactions; it just creates a delay while the rebuild routine does its processing.

A Reference field is available for making a short note that will go into the inventory transaction file and can appear as a reference on reports.

The Quantity to Make field shows you the original order quantity for the work order and the Qty Completed TD field shows you how many units have been completed to date.  Both fields are for reference only.

Enter the Quantity Good Completed for this transaction.  If you enter a quantity that causes the total Qty Completed TD to exceed the original work order Quantity to Make, you are asked the following.

Total quantity completed exceeds the "Qty to Make" for the work order.  Do you wish to make the "Qty to Make" to be equal to the quantity completed?

Some companies routinely make production overruns but want to keep the original work order quantity as a reference to track the frequency and quantity of overruns, in which case they would answer N to the above question.  On the other hand, some companies regard the original quantity to make as just a rough guideline and don't really know how much the will actually make until the work order is finished, in which case they might want to answer Y to the above so that the work order quantity equals the finished quantity.

Enter the Scrap Quantity, Scrap Code and Scrap Desc for any assemblies to be charged as scrap.  Depending on the default setting in SD-Q IS Tech Support Defaults the cost of the scrap items will be amortized among the good parts, posted separately, or you will be prompted which way to post the scrap costs.  The balance of the parts to be completed on the work order may also be reduced by the scrap, also depending on the default setting.

After entering the Quantity Good and Scrap Completed and answering the above question (if applicable), you are then asked the following:

Is this the final quantity to be entered for this work order?  If YES, the program will calculate a unit cost that balances total work order actual costs with all previously reported finished production.

If you answer Y to the above question, the program will calculate the cost such that the cost of this receipt added to all previously reported transactions equals the total cost of the order, thus ensuring that all costs that were reported to the work order (work-in-process) equal the costs for finished production (inventory).  If you know that all costs reported to date to the work order apply to the items being completed and want to zero out the net cost in the work order, you can answer Y to this question even if it is not the final receipt.

If you answer N to the above question, indicate whether you wish to use the standard cost or the actual cost.  If you enter Y for Use Std Cost?, the system will insert the current total standard cost into the next field which will then be the cost used in the average cost calculation when the finished items add to inventory.  The standard cost is often used for partial receipts where it is difficult if not impossible to determine a per unit cost until the work order is fully completed.

If you don't want to use the standard cost, the program will calculate an actual cost based on costs reported to-date.  If all costs are not in yet, the program uses a combination of actual and estimated costs, resulting in an approximate actual cost.  You can manually override the calculated actual cost and insert an estimated cost, if you wish.

Whatever the source, the cost entered in the Actual Unit Cost field is the cost used to recalculate the inventory average cost for the item.

If you don't use the balancing routine for the final quantity (some companies report all transactions at standard cost) then when the work order is closed the program will make a variance posting to the WIP Variance account defined in AD-A  General Ledger Defaults to zero out the balance in WIP.  You can use JC-Q Print Work Order Receipts to get a listing of Finished Production Receipts, Scrap receipts, and WIP Variance postings.

If the item is coded in the inventory file for lot control, you will be required to enter a lot number.  If the lot number does not exist, you will be asked if you wish to add it and whether you wish to enter any notes.

In a similar fashion, if the item is coded to require serial control, you will be required to enter a serial number for each unit completed.   If you have entered parameters for automatic generation of Serial Numbers at SC-G Enter Serial Generation Parameters then when you click the "Auto Generate" button, the program will display the next serial number in the series.  You can accept it or change it, enter an expiration date if applicable, and then click process and the program will generate all the serial numbers needed and save the last number used back to the Serial Parameters file.  If any serial number that it is trying to create already exists, the number will be skipped and the next available number will be used.

When you are at the end of the screen you will be asked if you wish to save the record, or you may save the record from any point on the screen by pressing the F10 key (or clicking on the Save button).

Backflushing Materials

If you have Backflush Materials at Enter Finished Production? set to Y in SD-B  Work Orders Defaults then once the quantity completed is entered, you will be prompted to backflush materials.  If you answer Y, the components required for the quantity of end items completed will be pulled from inventory into the work order similar to a kit issue in WO-G  Issue Materials.  

If you have Backflush Materials at Enter Finished Production? set to A in SD-B  Work Orders Defaults then the backflush will always occur without prompting.

If you have Backflush Materials at Enter Finished Production? set to B in SD-B  Work Orders Defaults then the balance of components needed for the total assembly quantity completed will be backflushed without prompting unless the quantity complete being reported is a negative, in which case you will be prompted and backflushing of the indicated quantity of assemblies will be processed regardless of balance needed.

In all cases, components flagged in BM-A  Enter Bills of Material to be excluded from backflushing for scrap assemblies will only be backflushed for the good parts.

Component Record Locks

If a necessary file for any component is open by another user causing a record lock for that item, the component issue will be posted to a temporary file so that the backflushing process is not aborted midway through the Bill of Materials.  A message to that effect will appear on the screen.  The components thus affected need to be posted at a later time using WO-O Post Material Transactions before the job costing will be correct and the work order can be closed.

Multi-Yield Work Order

A multi-yield work order is a single work order that produces multiple different outputs, as in the case where a single sheet of metal is cut into a number of different parts.  The work order is set up under a type N Part number defined in IN-B  Enter Inventory as a "Multi-yield placeholder".  When WO-I determines that the part on a work order is a placeholder part, the program prompts for processing a multi-yield work order.  You are then asked whether to proportion material costs by Weight, Foot Factor, or Each (W/F/E) and whether to use standard cost.  You are then presented with a screen for entering the list of parts and quantities made.  Once the list has been entered, click Process and you will then be offered the opportunity to modify the calculated labor percentages because the distribution of material and labor cost may be different.  Once you have made any desired corrections to labor percentages, click process and the enter Finished Production will be processed for each item and the proportional costs assigned.  If you have chosen to use standard cost, any doifference between the calculated proportional cost and standard will be posted as a variance.

Closing the Work order

If you have Close Work Order at Enter Finished Production? set to Y in SD-B  Work Orders Defaults  and the total quantity completed equals or exceeds the work order quantity, then you will be prompted to close the work order.  Generally this would be done only if all costs have been fully reported.

Editing Previous Entries

If you wish to change a previous entry, press F2 (or click on the Lookup button) while the cursor is in the Date Received field.  You will get a listing of all finished production entries sorted by work order number and by date within work order.  Highlight the entry you wish to change and press <Enter> or click on it.  The original record appears on the screen.

If you continue, you will be asked if you wish to back out the record.  If yes, you can then move on and change any of the fields and resave the record.  The original transaction will be reversed and a new transaction will take its place.

If you wish to delete the record and not change it, go ahead and back out the record, then press <Esc> to leave the screen.

Keep in mind that if Backflushing at Enter Finished Production is used, the transaction reversal that takes place is only the Finished Production transaction.  The backflushing transactions of components are not reversed.

Processing

When a finished good is received into inventory, the following processing takes place.

The quantity completed is posted to the work order header file, where it can be viewed through WO-A  Enter Work Orders .

The On-Hand quantity for the item is increased and the On Work Order quantity is decreased.

The In Work-in-Process quantity for each component in the item's work order bill of material is proportionately decreased by the quantity required to make the finished good quantity being received.

If general ledger posting is switched on in SD-H  Inventory Defaults, the asset account defined in the inventory master record for the item is debited and the work-in-process account is credited.