General Information about WIP List

You will find a general description of how to manage lists in MONITOR in the chapter Managing Lists in the System under General in the MONITOR Basics guide.

What Does This Procedure Do?

The WIP List procedure is used to calculate and print lists containing the value or worth of Work in Progress - WIP - for ongoing orders. By using the alternatives provided in the Create tab, you can create different kinds of calculations. This allows the WIP List to be presented with different levels of detail. Read more under printout samples for information about the lists.

What Is WIP?

In short, the WIP value (Work in progress) is a total value of the withdrawn material and parts from the purchased or semi-finished product stock via different manufacturing orders that are under production, plus work or subcontracting input. But since WIP can be calculated in so many different ways, this description does not really cover all the facts.

There are two variations that can be used to calculate the WIP for incorporated M-parts in a structure order.

1. These can either be valued as WIP or as an inventory value. The inventory value is calculated in the Inventory Value List procedure. This is governed by the setting Use Balances for Incorporated M-parts in Structure Orders? under Orders in the Manufacturing tab in the Settings procedure. In the WIP List you will then see the balances as the inventory value under WIP to stock, as long as partial reporting has been made for the last operation on these parts.
2. For those cases when manufacturing is made directly against customer orders for a top level M-part, the part will not be transferred to the finished stock, but sold directly and therefore be registered as an income instead. That is why the WIP value is included with the inventory value in the current (liquid) assets in accounting situations. The inventory value of withdrawn parts in a purchased stock or semi-finished product stock, will be transferred to the increasing WIP during the manufacturing process, and once the parts have been reported as finished, they will go back to being an inventory value in the finished stock. Or alternatively, they will turn into an income, if the manufacturing is made directly against customer orders and not against the finished stock.

In order to show the differences between how the WIP should be valued, whether you manufacture against finished stock or customer order, there are two different examples under Summary and Tips for Inventory Values and WIP Lists.

As a complement to this WIP List there is a procedure called WIP List - Order-bound Purchases. This procedure displays the WIP value of the purchase order rows that are linked to existing manufacturing orders when registering. These purchase order rows will not be included in the WIP list here, since they are "free" purchase order rows, service rows or tool rows, but it can be different purchases that might have to be added to the WIP.

Please Note: It is important to remember that the WIP value is an instantaneous value, i.e. a momentary value. One requirement to get a correct WIP value is that all the preparations and order reportings must have been properly carried out. All parts must also have a registered standard price.

Tip! As WIP is an instantaneous value, you cannot calculate the WIP for a period in past time. However, you can always save a copy of the database, for example to account for WIP in monthly statements, by creating a scheduled copy of a database backup for a certain test company. That test company can then be used to calculate the WIP when preparing the monthly statement for the last month. Read more about this under Summary and Tips for Inventory Values and WIP Lists.

What Update Options Exist for this Procedure?

This procedure does not contain any update options, since the WIP value is created using statistical values from manufacturing order reporting.

Can Any Charts Be Displayed?

There are no charts or graphs available in this list.

Window Functions

Read more about the Window functions under Window Functions in the MONITOR Basics guide.

See also:

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