WIP

Hi All,

I want to manage amout of WIP after every Work center, how can I do it? May you talk about Chart of account and the meaning of it?

How many type of account which is support in AX and the meaning of each? When and How I use which type’s account? I don’t know anything about accounting, so it’s difficult when become consultant ERP. My major is Industrial Engineering and I want to know about Production function in AX, but AX is refer to Accounting so much. So I hope who can help me know about Production in AX and a little about Accounting.

Thanks in advance

In the parameters you define the WIP by Work Centre. WIP is then posted to the charf of accounts as every financial transaction is. You need to structure the chart of accounts WIP to reflect your requirements, which is by work centre, then map this across.

Read a book about accounting, before askign these questions, NEVER let a system drive your knowledge, there is little point in letting AX drive you, understand accounts, then you can apply what AX does to them.

Any ERP system refers to accounting, it has to it is how you know if a business is profitable or not.

Speak to an accountant, they can tell you teh basics, otherwise get a copy of a manufacturing COA and try to understand why the business has structured it in that manner. In many AX implemntations the COA will be resdesigned, partly because of teh system requirements, but also to enable better financial reporting - it is the best time to do this.

Hi Adam,

First, thanks for your answer to me. I will learn about Accounting more. I have a question that refer to Wip and Vendor. When I setup the subcontract, Must I manage the Wip of a component which is made by the other company?

In chart account, I have to setup basic information for them but which data is recorded in the account. For example, I just want to mange amount WIP, How I have to setup account in order to record amount WIP to this account. If I want to manage amount WIP after workcenter group or workcenter (my company have 7 workcenter group with 20 workcenter), I have to creat 7 account or 20 account. I dont know that wrong or right. Can you help me to answer above question?

Thank you so much

Regard,

Pham Hoai Vu

There is no correct answer, you can have 1, 7 or 20, it depends upon what you want to see. You can map all 20 to the one account, just financially you cannot see immediately which work centre it came from. The choice is yours, create teh COA as you want to see it and then map to it - the system does not on the whole drive the COA structure.

Hi Adam,

Thanks for your answer and I have a new question for you. When I start a production order, the system will seperate amount of Item base on BOM. But I want to manage the scrap during the process and I want to post amount of scrap in to the other account, I wonder how I do it, and I want to know the amount of scrap after an order finished. I wonder whether AX can do it or not?

Thanks and regards

I recommend in future you start a new post for a new question to enable other users to see it and answer it.

Scrap can be setup and you can allocate the cost across the BOM or to a specified account, you can set this up on teh BOM or you can manually record it in the picking list journal in the scrap section. By setting it to a specific account you can analyse it. Otherwise you write a report to tell you what you want to know.