Work Order Variance
Planned vs. actual quantity, time, and cost per work order; highlights scrap rate and labor efficiency.
Costing and finance
Standard costs, cost rollups, work-in-progress, variances and the journal entries that make every movement a posting.
Approval conditions
Visible to: Accountant. Visibility does not establish approval authority.
Draft
- JE-33179 Issue to WIP 14 d
- JE-30548 Completion at standard 4 d
- JE-69432 Goods receipt 12 d
- JE-11285 Scrap 10 d
- JE-29785 Bill match 14 d
JE-33179
- Date
- 03 Sep
- Description
- Issue to WIP
- TotalDebit
- 11,718.45
- TotalCredit
- 11,718.45
- ReferenceType
- StockMovement
Approval conditions.
Standard costing
Each item has a standard cost with material, labour, overhead and outside-processing elements. The cost rollup walks the bill and routing: component standards times quantity, plus operation times at work-centre rates, plus overhead by the rule set for the work centre. Rollups are run into a pending standard, reviewed, and activated on a date, which revalues inventory with a posted revaluation entry.
Work in progress
WIP is tracked against the work order using the configured ledger accounts. Release creates the production records without a ledger posting. Material issues, labour and overhead debit WIP; completions credit it at standard. At close, the remaining balance is analysed into the variance categories supported by the plant’s cost policy and posted to the relevant accounts.
Postings by event
| Event | Debit | Credit |
|---|---|---|
| Goods receipt | Inventory (raw) | Goods received not invoiced |
| Supplier invoice matched | Goods received not invoiced | Accounts payable |
| Issue to work order | Work in progress | Inventory (raw) |
| Labour reported | Work in progress | Absorbed labour |
| Completion | Inventory (finished) | Work in progress |
| Scrap | Scrap expense | Work in progress or inventory |
| Shipment | Cost of goods sold | Inventory (finished) |
| Work order close | Variance accounts or work in progress | Work in progress or variance accounts, according to the remaining balance |
General ledger, payables and receivables
The ledger carries ChartOfAccounts, JournalEntries and AccountingPeriods. Payables come from approved supplier invoices and receivables from shipped sales orders. PaymentRuns records payment preparation and independent authorisation; CustomerInvoices retains due dates and outstanding amounts. Bank-statement reconciliation and reporting dimensions must be scoped with the plant’s accounting integrations.
Period close
Close is a checklist: post open labour, close completed work orders, reconcile inventory valuation to the ledger, post accruals, review variances, lock the period. Each step has an owner and the checklist is the audit evidence.
Modules
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Product engineering
Items, bills of material, routings and engineering change, with revision control on all of it.
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Planning
Demand, master schedule, MRP and capacity: from what customers want to what the plant and suppliers must do, with every planned order traceable to its demand.
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Shop floor
Work orders, dispatch, operations, labour, material issue, scrap and completion, recorded where the work happens.
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Inventory
Warehouses, locations, lots and serials, every stock movement, cycle counting and valuation that reconciles to the ledger.
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Purchasing
Requisitions, sourcing, purchase orders, receiving, three-way match and supplier performance, with approval where money is committed.
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Quality
Inspection plans, incoming and in-process inspection, non-conformance, corrective action, holds and certificates, tied to the exact lot or order.
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Costing and finance
Standard costs, cost rollups, work-in-progress, variances and the journal entries that make every movement a posting.
Reports
All reportsInventory Valuation
Standard-cost valuation by item type (Raw, WIP, FG) and warehouse, reconciled to GL inventory accounts.
Financial Overview
Trial balance and manufacturing P&L with COGS broken into material, labor, and overhead.
Roles and permissions
Manages procurement of raw materials and components.
Owns the general ledger, payables, and receivables for manufacturing transactions.
Makes assigned purchasing and control decisions independently of the person who requested or prepared them.
Related processes
Procure to pay
Requisition, approval, purchase order, receipt, inspection, three-way match and payment authorisation, with segregation of duties built in.
6 stages · 2 approvals
Order to cash
Quote, sales order, promise date, reservation, pick and ship, invoice and cash, connected to the plan so the date you promise is one the plant agreed to.
6 stages · 1 approval
Engineering change
Changing an item, a bill or a routing without breaking the jobs already on the floor or the stock already on the shelf.
6 stages · 1 approval