• From: Pakistan, Karachi
  • Registered: 03/03/2015
  • Posts: 654

Topic: An Irrational Behavior in Manufacturing Advanced Manufacturing

I have taken a Very Simple Case Through Advanced Manufacturing without defining BOM.

1. Manufacturing of 400 Kg rice Bags.

Day 1:
a. Raw Material of 200 Kg is Issued to WO.
b. Labour and OH Cost is also issued to Work Order
c. 200 KG of Rice Bags are Produced.
d. No Finished Good Inventory of Rice is Added.
e. We needed to Sell those 200 Bags but since No STock was added to Inventory the Invoice Couldn't be made.

Day 2:
a. Raw Material of 100 Kg is Issued to WO.
b. Labour and OH Cost is also issued to Work Order
c. 100 KG of Rice Bags are Produced.
d. No Finished Good Inventory of Rice is Added.
e. We needed to Sell those 100 Bags but since No STock was added to Inventory the Invoice Couldn't be made.

Day 3:
a. Raw Material of 100 Kg is Issued to WO.
b. Labour and OH Cost is also issued to Work Order
c. 100 KG of Rice Bags are Produced.
d. 400 Bags of Rice are Added to inventory and WO is set to Closed.


My Question is Why Stock is not Added If Partial Production is Run. Is this any irrational behavior no one could figure out yet or it is lack of my understanding?

Any Idea?

www.boxygen.pk

boxygen's Website

  • From: Colombia
  • Registered: 12/29/2014
  • Posts: 629

Re: An Irrational Behavior in Manufacturing Advanced Manufacturing

I'm getting the same, so wiki

wiki wrote:

Advanced Manufacturing.

    If you make several productions or adding extra costs to a Work Order, the work in progress will be visible in the balance sheet.
    When the closing productions has been done the work in progress is transferred from works in progress to finished goods.
    From the Release status to Production you will see the demand of BoM items in the Item Status together with other demands as sales orders.

To me the 2nd line reads that only when the w/o is closed will the wip be transferred to stock.

So it seems separate w/o's are necessary: Is there a reason you cannot issue a w/o for 200 and 2 more for 100 each?

The FrontAccounting Wiki(Manual, examples, tips, setup info, links to accounting sites, etc) https://frontaccounting.com/fawiki/
  • From: Pakistan, Karachi
  • Registered: 03/03/2015
  • Posts: 654

Re: An Irrational Behavior in Manufacturing Advanced Manufacturing

Agreed

www.boxygen.pk

boxygen's Website