Summary and Tips for Inventory Values and WIP Lists

When Manufacturing to Finished Stock:

• The inventory value of P-parts, M-parts and S-parts must be based on the standard price.
• The WIP List for M-parts and S-parts must be based on standard price, using the Started, not finished setting. WIP List will calculate the value to Net WIP.
• This way of calculating the value is the most common one.
• The inventory value calculation for P-parts, M-parts and S-parts can also be rolled into one single calculation.
• To obtain a limited list for your voucher files, use a Minimum value when calculating the inventory value, so that only the 30 most valuable stock parts will be shown in detail, and the remaining parts will be shown as a total under Total small items.
• It is appropriate to use the Order list type in WIP List, to create a short list for your voucher files.
• You can check how realistic the WIP value is by creating the WIP value using Reported quantity. This way, the WIP value will be calculated regardless of reported time.

WIP when manufacturing to finished stock.

When Manufacturing to Customer Orders:

• The inventory value of P-parts and S-parts must be based on the standard price.
• The WIP List for S-parts must be based on standard price, using the Started, not finished setting. WIP List will calculate the value to Net WIP.
• The WIP List for M-parts must be based on standard price, using the Started, not finished setting. WIP List will calculate the value to Gross WIP.
• This form of evaluation is mainly used by companies that manufacture directly against their incoming customer orders. This particularly applies to companies with few orders that are more like projects with long-term manufacturing.
• The inventory value calculation for P-parts and S-parts can also be rolled into one single calculation. Please Note! No inventory value will be calculated for M-parts, since they are included in the WIP List.
• To obtain a limited list for your voucher files, use a Minimum value when calculating the inventory value, so that only the 30 most valuable stock parts will be shown in detail, and the remaining parts will be shown as a total under Total small items.
• It is best to use the Order list type (or classify the list by Project, see below) in the WIP List, to create a short list for your voucher files. Please Note! The S-parts and M-parts have different Order status.
• You can use the WIP List to check how realistic your WIP values are. You can do this by setting the Project = Customer order number for all the manufacturing orders that apply to the same customer order. Then you can classify the WIP List by Project, which will give you a basis that can be compared to the customer order backlog.

WIP when manufacturing to customer orders.

When Using Warehouse Management

If you use the supplement Warehouse, the FIFO price is always calculated based on the part’s total balance and valid transactions from all warehouses. The stock order is no longer a valid transaction type for this calculation.

of