WIP value

In this procedure you can calculate the value of the work in progress (WIP), that is, the value of manufacturing orders in progress. The report can be used e.g. as a basis when recording the WIP value in the accounting in connection to monthly or annual accounts.

You can calculate the WIP value as a situation report for today or for a selected time in the past. You can also make different choices for how to value the components of the WIP value, that is, how to value material, subcontract, and work. You can also take different price alternatives into consideration for parts, and consider cost factors for work centers.

With different selections and by choosing order status 3 to 5, you can determine which manufacturing orders to be included in the WIP value. The information of the WIP value is based on parts, manufacturing orders, and the associated reporting logs. If you use the Tools & Maintenance option, you can choose to include tools in the calculation. All the values and prices are displayed in the company currency in the procedure.

The procedure is similar to the Post-calculation procedure having the same tabs; Direct material, Order oriented manufactured parts, and Stock driven manufactured parts, Operations, Level list, and Warning list. This division is useful when analyzing details in the WIP value. One thing that differs from the Post-calculation procedure is that the WIP value is always displayed for the entire order quantity. The Post-calculation can display all the values/costs either per unit or total for the entire order quantity. Another thing that differs is that there is no update option of the WIP value.

FIFO FIFO is calculated via the old stock log records existing in the system. All records have a price which is saved during the arrival reporting. However, for a purchase order the price will be updated when the supplier invoice becomes linked to the arrival reported items. This means that the FIFO value can change even though no stock transaction has taken place after the most recent inventory value list was created. Stock count and direct stock reporting will have the standard price as value. Other transactions such as negative reporting of material via manufacturing order, gets the standard price and also affect the FIFO. When FIFO is to be calculated, the part's balance is first checked. Then the program will find as many (positive) transactions as needed to be able to valuate these parts. The most recent transactions will then be used first. Example: If you have a balance of 100 units and the most recent transactions are: first a purchase of 80 units for EUR 10 each and then a purchase of 20 units for EUR 20 each, then the FIFO will be: 80 × EUR 10 + 20 × EUR 20 = EUR 1200, that is EUR 12 per unit. always links withdrawals to arrivals based on log date and not the actual date. This means that the correct stock value cannot be guaranteed based on historical actual date when the price alternative is FIFO.

List types

Total by order | product group | project | customer

The list in the WIP value procedure is shown according to the total of the selected list type. The list type "Total by order" shows the most information, and is based on the columns you have selected to add in the list. These are added under the Selection tab.

Detailed

The data in this list is merged from the tabs Operations and Level list. The list is grouped by manufacturing order, where each part's operation list is shown below its main part in the level list. In the list you see the settings that have been configured under the Selection tab.

The list is a document which is suitable to print. The document variant called WIP value, detailed (export) is intended for export to Excel.

You can also create your own variants of the document type in the Document templates procedure. There it is called WIP value, detailed.

Reconciliation

This list type is available if the option Management accounting Management accounting is an option in Monitor ERP. It is used as a complement to the standard function called Stock accounting. The function means that all transactions on manufacturing orders (WIP value) are posted and transferred to the general ledger in the Accounting module in Monitor G5. The hours worked are recorded in the income statement, and provide a financial follow-up, for example, made per department and cost factor. Calculation differences are posted and these can be followed up per product, per order, etc. This function also contains extended management of cost of goods sold. is installed in your system. In the list you reconcile the WIP value with the booked balance on the WIP account in the accounting. Data is shown as a total per order number. For each order number, you can see detailed information about the transactions.

Selection rows

In a list procedure there is always a tab called Selection where you can select data records in different intervals from the database. The data records are then loaded by using the Load button in the toolbar of the procedure.

Under Selection rows in the backstage of the procedure, you can choose which selection rows that each list type should have, under the Selection tab in the procedure. In the List type field you select for which list type you want to customize the selection rows.

One table shows selection rows possible to select and one one table shows the selected selection rows. You can add, delete, or move selection rows by dragging and dropping the selection rows with your mouse pointer.

Using the Save button you save the selected selection rows.

Read more about this in the Selection topic.

You can automate the running of this procedure with the Agent option. Read more about The Agent can help make your processes more efficient.