WIP Inventory qty and value

pashya1972

Hi

I wud like to know the procedure to view the WIP qty stagewise(work centrewise) both qty and value in Nav 4.0.
Also if anybody can inform the detailed steps to verify the costing. We ve average cost method. Also detailed accounting effect wud like to know.

Pash

ayhan06

pashya1972 wrote:

Hi

I wud like to know the procedure to view the WIP qty stagewise(work centrewise) both qty and value in Nav 4.0.
Also if anybody can inform the detailed steps to verify the costing. We ve average cost method. Also detailed accounting effect wud like to know.

Pash

there is no standard report showing stagewise WIP qty and value.. but,you can modify report 5802 "Inventory valuat,on-WIP" as to show qty and value.
(you will be succesfull only if you are using routing link codes.)

lally

Hi ayhan06,



Could u throw some functionality to develop this .


Thanks and regads

pashya1972

Thanx for reply.
can u throw some lights on accounting effects right from material issue to FG.

Pash

reema

I am trying to throw some information some what I know .
In Manufacturing company, the cycle start from purchase of raw material and end at the selling of finished goods:
Purchase Raw Material >--(convert)--> Work-In-Process >--(convert)--> Finished Goods >>>> Sales of Finished Goods
Thus,there are 3 types of inventory for a typical manufacturing company:
1) Raw Material Inventory - raw material to be used as input in manufacturing process
2) Work-in-Progress (WIP) Inventory - Goods which are still in the process of converting to finished goods. It's not yet a finished good.
3) Finished Goods Inventory - Completed unit output from manufacturing process.
Correspondingly,
ThreeI nventory accounts are created.
1)RawMaterialInventoryAccount
2)Work-in-Progress(WIP)InventoryAccount
3) Finished Goods Inventory Account
When raw material is purchased, the cost of the raw material will be posted to the Raw Material Inventory acccount. Raw Material Inventory Account will store the value of raw materials received but not yet issued to production department. When the raw material is transferred to production department, the cost of the material will be transferred from Raw Material Intentory Account to WIP Inventory Account. Direct Manufacturing Labor Cost and Manufacturing Overhead Cost will also be debitted into WIP Inventory Account.
Now here if u run the report Inventory valuation – WIP , then you can get some value about the costs of rawmaterial.
If u want to see the values in the report Inventory valuation – WIP, u should not change the Production order status to Finished and Should not run the Adjust Item cost entries.
When the finished is completed, and run the Adjust item cost entries, the WIP Inventory Account will be credited with the total manufacturing cost and the cost will be debitted into Finished Goods Inventory account. When the Finished Good is sold, the cost will be transferred from Finished Goods Inventory Account to Cost of Goods Sold (COGS) Account.
Now if u run the Inventroy valuation report for that Item ( Finished item) , you can get the values.

pashya1972

Thanx for your reply.
Just to want few things.
In Genereal ledger set-up posting set-up various a/c are related to WIP/FG a/c. e.g. direct cost applied , wip account, interim inventory, inventory a/c. We r not using overhead rate , mfg rate etc. We ve defined work centre wise cost in routing lines. Can u confirm the set-up?since there is some confusion in my mind.

Inventory posting setup>
1.Inventory Account > Cl.stock WIP (Asset)
2.Inventory Account Interim > Cl.stock WIP Interim (Asset)
3.WIP Account > Cl.stock WIP (Asset) same as sr#1.

Querry> Why there is need to set-up two accounts i.e.sr#1 and sr#3 as both r same?

General Posting Set-up

1.Inventory adjustment A/c > Inventory adjustment a/c WIP (P&L)
2.Direct cost applied A/c > Dir.cost applied A/c (P&L)

Considering above can u confirm the earlier steps with the accounting set-up defined.
e.g.when rm issued , order released etc.

Thanx in advance.

Pash