Work-in-Process seems incorrect

Hi! I’m not sure how to say it but our WIP account is too low and it even went negative! I generated the report Inventory Valuation - WIP and there are some finished production with negative values (cost posted to GL). 'Tried analyzing some few examples but it’s not consistent. Any inputs on where to start looking at? Thanks!

Have you run the adjust cost item entries process? Have you made finished released orders finished orders?

Yes… we’re running the adjust cost/post cost everyday. what do you mean by finished released orders finished orders? when we invoice the sales order, it automatically finished the production order? thanks!

Hi Therese The production order will have the status of released. I cannot remember the exact timing, but when you alter the status of the released production order to a finished order the costs move out of WIP. If your production orders are automatically completing on invoicing the sales order this could be a modification - I am unsure if this does this in standard Navision if the production order is tied to a sales invoice, I would need to check - Just checked and it does not in my version 4.0 but it maybe a localisation - any Canadians confirm or deny this? You might therefore want to start with an investigation into the modifications in this area. So next question - do you have any modifications in this area? Can you load a production order independent to a sales order, track the WIP through and see the transactions? What version are you running?

Thanks for the reply Steven. I am using 3.70.A. Yeah, it was a modification such that when we ship and invoice the order, the production order will be finished as well. It is not consistent though when using the same item, sometimes it is flushing out the WIP but in some cases it is not. I’ll try to check where do they differ.

Hi Therese Maybe set the modification writer to look at it? Does teh output last operation get flagged as finished? I suppose you might want to look at the flushing method of the finished item, although this may not affect anything, maybe the flushing methods of the components is the key here. I suppose what you need to know is whether the WIP differences are consistent when you process the same item in the same manner. If not I would say it is something in the modification, although I think it is there anyway! [:D]

Hi Steven, I got my answer. Somehow, some of the items that were consumed in the production orders are not invoiced yet. Upon invoice of the item. the system will flush out the WIP. I was informed that this is how Navision works. Have you heard about this? Thanks!

Hi Yes I was aware of this. However the entries will go into the WIP account when the consumption and output are posted, getting the cost of the relevant items from the item card. Generally when the production order is finished and the adjust cost entries routine is run the entries move out of WIP into the relevant accounts. However if the goods consumed have been received not invoiced the true cost of the component is unknown, and therefore the true cost of the parent. Once invoiced the costs will be pushed to the relevant accounts at the next running of the adjust cost item routine.