Some costs associated with a works orderThe authority to produce a part using the components specified on a BOM and the process specified on the routing. may not be known until after the finished item has been completed and added to the company's stock so that it can be sold.
When you have completed the works orders, stock levels of the finished item are increased. You must close the works orders in order to update the costs of the finished items and update the Nominal Ledger.
You can only close a completed works order when the costs of the finished items are known.
You can make postings to a works order after you close it, for example, if you post timesheets on a specific date each month. When you close the works order, you can enter this date as the date of closure rather than today's date. This means the dates for the postings and the date of closure for the works order will be the same in the Nominal Ledger postings.
Open: Works Orders > Processing > Close.
The default asset nominal account to post the cost to is displayed.
If the works order is for a stock item, this defaults to the asset account for the stock item. If it is for a service one-off works order, it defaults to the one-off asset account set in Nominal Settings in the Manufacturing System Manager.
Select a different account if required, from the Nominal Code drop-down list.
Enter the Date Closed.
This defaults to today's date but you can change it, if required.
If you leave the Date Closed as today's date, you can make postings to the works order in retrospect but the dates of the postings will not match the date of closure in the Nominal Ledger.
If you know you will be making postings to the works order on a specific future date, you can enter this date. In this case, the dates for the postings and the date for closing the works order will be the same in the Nominal Ledger.
The unit cost of the finished goods is calculated by dividing the total cost of the works order by the number of completed items.
The stock records are updated with the calculated unit costs.
The work in progressWork in progess (WIP) is a product's value as it moves through production. This is increased by issuing stock and decreased by completing works orders, returning or scrapping stock. and asset of stock records are updated in the Nominal Ledger.
The works order is marked as closed.