WIP Account

podolly

Hi all,

I've got a question about the WIP account in inventory posting group. We have defined 2 posting groups, MACHINE and RAW MAT. I tried to point the WIP for MACHINE to a GL account, and when I try to consume materials, it always prompts me to define WIP for the Raw Mat. item. Can anyone give me the overview how this account is used? And do I need to define WIP for both MACHINE and RAW MAT? As our finance only want to capture WIP for machines.

Many thanks.

AdamRoue

So how will your client account for the items that are being consumed in the works order from a WIP perspective when a works order is in progress?

podolly

They want to post all WIPs amount to the defined WIP account for MACHINE. If the same item is used to manufacture another product with posting group MACHINE2, WIP will be posted according to setup for MACHINE2.

Is the above possible?

AdamRoue

I understand that for the LABOUR element of WIP.

Do they want the MATERIAL element of WIP also posted to the MACHINE?

podolly

Actually they want to post WIP for MACHINE only.

But I wonder how's the concept in NAV?

e.g. Product: MACHINE (with posting group: MACHINE)
BOM: ITEM1 (with posting group: RAW MAT)
ITEM2 (with posting group: RAW MAT)

Does the posting of WIP always follows RAW MAT instead of MACHINE? i.e. we cannot have WIP account by product, instead, by raw materials?

Thanks.

AdamRoue

I am not even talking product here.

If you have a product that costs $10 in labour and machine and $8 in materials you are saying that the business you are dealing withi only want to see $10 accounted for in WIP, and they NEVER want to see the $8 - is this correct?

From a product pespective and NAV the Inventory Posting Group controls the WIP, this is against the finished product, I am pretty sure you do not define this against each work centre, this is because if you have a routing going through multiple work centres where would it post the WIP? Instead it hangs this off the item to collate the WIP element relating to what you are building.

If however your products are more one work centre centric you can probably define the WIP out by Machine, but actually by the item, not something I have gone into in depth, you would need to play with it.

However what I am not sure of is what the client wants to see still, so if we have a routing going through 3 machines are you saying you want the three elements split into MACHINE WIP accounts but only for the routing element of WIP and not the inventory element?

podolly

Let me interpret our case.

At the moment, we are not considering any capacity / work centre cost. The MACHINE is our finished goods actually. I want to know if the WIP is posted per raw material or per finished goods.