Purpose

Create Work Order documents. Transactions are posted to GL on closure. Advanced Manufacture is used when we wish to add items and costs to the BOM during the manufacturing duration.

Procedure

Assembly (simple)

When an assembled (or disassembled) product is created, all the processes are done in one sweep.

1. Enter a number of units. If disassembling, then units are negative.
2. The material cost for the assembled (disassembled) item is regulated.
3. If overhead or labour cost has been added then these costs are adjusted to the average cost.
4. The BOM items are added to stock moves with item quantities and a minus value.
5. The stock movement for the assembled product is added as a positive quantity value
6. The total cost for the BOM items are credited to the GL Inventory account (debited if disassembled)
7. If overhead cost and/or labour cost is <> 0:
   • A GL trans has credited the credit account for both values.
   • If this is a bank account, a bank trans is added to the default (or first) bank account.
   • A GL trans has debited the GL Assembly Account for both values.
8. A GL trans has debited the assembly itself in the GL Inventory account (from 6 above).
9. Comments, references and audit trials are created.

Assembly (Advanced)

Creation

1. The material cost for the assembled item is regulated.
2. Comments, references and audit trails are created for the work order.

Release

1. The released flag and released date are updated.
2. Comments and audit trails are updated with ‘Release’.

Additional Issues

1. A stock move is created for each issued item of type Work Order Issue.
2. Comments, references and audit trails are created for the Issue.

Costs
Every time a Cost entry is done the following operations are done. The Type is work order and the id is the work order id.

1. A credit GL transaction is done to the entered credit account. If this is a bank account a bank transaction is done to the default account.
2. A debit GL transaction is done to the entered debit account.

Production
For each production, the following operations are done.

1. A record is inserted and produced quantity is inserted.
   • For each BOM item, the records are updated with produced quantity in quantity issued.
   • A stock move is created for the BOM item of type Work Order Production (minus). Was earlier of type Work Order.
   • The material cost for the item is credited to the GL inventory account
2. For each additional issued item, the total issue cost is calculated.
3. If the total cost <> 0 the Assembled items material cost is regulated.
4. The overhead and labour cost is fetched and if <> 0 the overhead and/or labour cost is regulated for the assembled item.
5. The material cost for the assembled Item is debited GL inventory account.
6. The stock move for the produced assembly is created of type Work Order Production.
7. The work order is updated with the produced quantity (issued).
8. Comments, references and audit trails are updated with ‘Production’.

Voiding a Work Order

Assembly (or dis-assembly)

1. Returning material cost for an assembled item and regulated.
2. If overhead cost and/or labour cost, these costs are regulated.
3. Void all the stock moves belonging to the work order.
4. Void all the corresponding GL transactions
5. Void all our requirements.

Assembly (Advanced)

1. Returning material cost for an assembled item and regulated.
2. Void the stock move from the production with type Work Order Production.
3. If issued items.
4. Return the issued items cost from the assembled avg material cost
5. Void stock moves from the issued items from type Work Order Issue.
6. If Overhead cost and/or labour cost then.
   • Return this cost to the assembled items avg cost
7. Voiding all stock moves belonging to the Work Order type.
8. Voiding all GL transactions for this Work Order.

Tips and Tricks

• Set a Bills of Material for manufactured Items before creating a Work Order.
• Make sure appropriate Item Assembly Costs Account is set in System and General GL Setup.
• Work Order Required by setting defines a number of days to allow for manufacturing of items.