Re: Work In Process Stock Record

We reconcile wip monthly in a process similar to what Al describes.
WIP is calculated as the difference between the value that came out of
wip, 
(quantity reported, [even if it is zero], times the standard cost) 
minus the value that went into wip, (material issued, [from FMA], at
it's cost, plus earned labor, [from FLT]). 

This is done at the shop order level in total, and at material, labor &
overhead comparisons. This can be generated at any time during the
month, and is reconciled to the GL at month end.
At month end, archived shop orders are valued the same way, and are
considered as wip variances to be booked; and the un-archived shop
orders are valued as wip, (regardless of the shop order status).

-----Original Message-----
From: bpcs-l-bounces+harrynicholl=hotmail.com@xxxxxxxxxxxx
[mailto:bpcs-l-bounces+harrynicholl=hotmail.com@xxxxxxxxxxxx] On Behalf
Of Bailey, Dick
Sent: Sunday, February 26, 2006 10:45 AM
To: BPCS-L@xxxxxxxxxxxx
Subject: [BPCS-L] Work In Process Stock Record




        We are on BPCS 8.0, with frozen standard costs.

        Our Accounting people cost individual transactions into and out
of shop order WIP, in order to (among other things) maintain a balance
of parts charged into WIP, but we have difficulty comparing this book
balance to a stock record at month-end. This is a substantial asset, and
we need a way to reconcile its accuracy..

        With parts inventory, the book balance can be compared to the
month-end by applying standard costs to the month-end inventory balance.


        What methods are people using to generate the same sort of
comparison for WIP?

        Dick Bailey

        MCFA, Inc.