Using Work Orders

A work order is used to create one or more finished good items from the same raw material item.

The Work Orders option is used to open work orders for finished good items that are planned to be produced from a raw material item. Work orders are used to transform raw material inventory lots into finished goods inventory lots. A bill of material (BOM) is used to define which finished goods items can be produced from which raw materials items. If defined as an other raw material item, the work order can be updated for the actual quantity used vs. the standard entered on the BOM.

Manufacturing costs to produce the finished goods item can be added to the finished goods item if the Manufacturing Cost Accrued option is set to Y (Y=yes) in Ledger Options. Manufacturing costs are added based on the BOM for the item; however, they can also be entered manually. The types of manufacturing cost that can be assigned to work orders are define as production cost adjustment types in the cost adjustment table.

Work orders can be opened for raw materials that are not used on a finished goods item BOM. The finished good items can be manually entered on the work order. The Bill of material (BOM) for the item added manually can be created and/or modified when the work order is created.

The work order can be updated with the planned raw material and finished goods production and completed based on the actual quantities at a later time or completed when entered based on the actual quantities produced and used. The work order cannot be completed until all raw material and other raw material lots have been assigned and the required lot number, COOL Identity and item info attributes have been assigned to the finished goods items produced.

Standard cost method finished items can be added to the work order. the standard cost item is treated as by-product. The weigh produced is not used in calculating the raw material and other raw material quantity. It is not included in the finished goods yield for the work order. The raw material cost allocation to the standard cost finished goods item is calculated based on the standard cost less the manufacturing and other raw material items for the standard cost finished goods item. The net raw material cost id deducted from the total raw material cost and the balance of the raw material is then allocated to the finished goods items produced. If the standard cost less the manufacturing cost and other raw material exceeds the standard cost, an inventory adjustment will be made using the standard cost adjustment type assigned to the sales category for the standard cost finished foods item .

Open work orders are included in the available inventory calculation based on the settings in Sales Options.

A maximum of 99 finished goods items can be produced on one work order.

When you first enter into the Open Work Orders option, the user will automatically be placed in the NEW work order option and immediately begin entering the.work order. Once the finished goods plan is entered and the raw material and other raw material lots have been selected, the work order cost and yield can be reviewed and modified and the work order completed or left open to complete based on the actual quantities produced and used. If the work order is left open, the user can print the work order report and production plan. The work order can be issued to the floor to record and confirm the actual quantities and lots produced and the actual quantities and lots for the raw material and other raw material used. The production plan will print the cost of the raw material other raw material and manufacturing cost standards and how they were assigned to the finished goods items produced .

Press Enter to Exit from the New work order option and a Select An Open Work Order window appears with the following options:

• EXIT – Select EXIT and the system will exit the open work order option.
• NEW – Select NEW to create a new work order, refer to the Adding a work order Available Actions link below.
• FIND - Select Find to find open and completed work orders.
  • Date Closed - Select Date Closed to find a completed work order based on the completed date of the work order.
  • Work Order Number - Select Work Order Number to find an open or completed work order based on the work order reference number.
  • Raw Material Items - Select Raw Material to find completed work orders by the raw material item.
  • Finished Good Item - Select Finished Good Item to find completed work orders for a specific finished goods item.
• PRINT – Select Print to print specified work orders, refer to the Printing Available Actions link below.
• A list of all Open Work Orders and Completed Uncosted Work Orders sorted by open and expected date, then uncosted completed work order. The following information will display:
• Status - Open = Open Work Order with an expected completed date less than or equal to the current date, Uncosted = Completed Uncosted Work Order, Expected = An Open Work Order with an expected completed date greater than the current date.
• The expected completed date for the work order.
• The raw material item id and name.
• Planned - The total quantity and unit of measure of the raw material assigned to the work order.
• Yield - The average finished goods yield for the work order.
• Next Lot - The quantity and unit of measure of the raw material assigned to the Next available lot, If the Other raw material is not specified ORM Next lot will appear.

Use the Available Actions links below for more information.

Security Required : Inventory - Work Orders, Inventory - Complete Work Orders