WIP Value An overview of Pro Manerp system

WIP Value An overview of Pro. Manerp system

Overview • • Definition of WIP and WIP clearing accounts WIP Inputs – value of actual costs WIP Clearing – value of goods received Variances – differences between last two

WIP account • You need to tell your system what your WIP account number is

WIP clearing • You need to tell the system what your WIP clearing account number is

Balance Sheet Inventory Raw Stock Work-In-Process less clearing Value of WIP Finished Goods 1 -0222 1 -0223 Debit Credit 100. 00 90. 00 10. 00

Detail Reports • WIP_VALUE – tie the column titled “value” to your WIP ledger account

Detail Reports • WIP_Clearing – tie the column titled “unclosd Rcpts” to your WIP ledger account

Real Time Sytem • Proman is a real time system • Transactions are posted immediately at the same time as they happen

Cost Categories • System tracks six cost categories – – – Material Cost Material Burden Outplant (sub-contracting) Labor Fixed Overhead Variable Overhead

PARTS_ACCT

Work Order Process • Take components out of stock at value • Add value – in the form of labor and sub -contracting and overhead • Create a new assembly to put into stock

PARTS_ACCT • Shows us this value added to make the part being completed and put into stock – This is not the actual labor and or material for all the components and subcomponents – It is the value added at this level

PARTS_ACCT • For manufactured parts, we should roll up the cost of the parts. – ROUTING_ROLLUP – BOTTOM_UP_COST

Actual Material Cost • Value of parts added to the work order – Qty of component times the accounting value of the component • • • ISSUE FIRST_ISSUE BACKFLUSH BULK_ISSUE SISSUE

Details of Material Cost • CHECK_ISSUE_COST • WO_SUM • WO_STATUS – click on component and see the details • Ref: Inventory transactions for ISSUE have code 44 on them (IT_RPT)

Misc material cost • MISC_PAYABLE – expense GL is your WIP account and then pick the Work Order • PO_PAYABLE – extra charges can be applied to your Work Order on the bottom of the screen

Outplant • Enter a Purchase Order with “W” line type, reference the WO and the sequence number • UNPLAN_REC – reference W line type, and then WO and sequence

Labor Cost • • PR_EXP MST_ENTRY SHOP_TIME_ENTRY SALARY_EXP (rarely)

Labor Rate

Labor Rate Variance • Charges work order with plant wide or work center rate and writes the difference with employee rate to a variance account • If average labor rate is accurate, this account will be zero at month end.

Labor Calculations Hours Account 2 1 -1301 2 1 -0222 2 1 -3125 2 1 -3170 -0005 2 1 -0222 2 1 -3170 -0004 2 1 -0222 Description payroll accrual Wip Rate Variance Earn Fix Burd WIP Earn Var Burd WIP Rate 22. 75 35. 00 -22. 75 45. 00 75. 00 Debit 70. 00 90. 00 150. 00 310. 00 Credit 45. 50 24. 50 90. 00 150. 00 310. 00 Comments employee Earning Rate Work Center Rate (or plant wide) labor variance amount Fixed Burden earned Variable Burden Earned

Employee Labor Rate • This comes from the EMPLOYEES screen. • Rate is on the screen for hourly people • Rate is calculated based on number of hours in pay period and employee salary

Work Center Rate • Work Centers has a financial tab that holds both rates and accounts. • If this is blank, we use the values in the MCF_GL_BURD_ACCTS_MAINT and MCF_CN_STD_BURD_RATES

Work Centers • Routing has Work Centers defined • If no routing on a part, then MCF is used by default. (perhaps SPCL_WORK) case

Status on WO • R – released to the Floor to build • C – complete on the floor and ready to be financially closed (set by Mfg) • F – financially closed by acct (only C items become a F)

WOCLS • Financial close WO – Credit to WIP at actual cost – Debit to clearing for value of good parts – Difference – become variances, broken down to the 6 different cost buckets

SHOW_WC • Shows a list of WOCLS items and the dollars calculated

Variances • Actual material minus the value of the good parts (material value from Parts_Acct) • Same for each cost bucket

Variance GL accounts • PARTS_VAR – for a part if blank then • MCF has plant wide accounts

WO_SUM • In summary section at the top of the report shows the values, both actual and standard value, with variances

F status on WIP_VALUE • If you run WOCLS on a work order, and then add more cost to the work order and/or receive a different quantity of parts. • We have more variances to calculate

Run WOCLS more than once • Nothing happens the second time if there are no changes to the value/standard receipt amount • If there are changes, only the net differences are booked to variances

Historical Data • WO_COST – shows work orders closed in a time frame, with summary of actual cost • WO_COST_MAT – average material cost • WO_COST_LAB – average hours by sequence (careful can be a lot of data)

Questions and Answers The only dumb question is the one that is not ask !