Work Order Variance
Planned vs. actual quantity, time, and cost per work order; highlights scrap rate and labor efficiency.
Period close
Closing a manufacturing period: open labour, work orders, inventory reconciliation, accruals, variances and the lock.
6 stages · 2 approvals
Roles and responsibilities
-
Step 1Post open labour and movements
Journal Entry NumberDateDescriptionTotal Debit
-
Step 2Close completed work orders
Journal Entry NumberDateDescriptionTotal Debit
-
Step 3Reconcile inventory to the ledger
ProductWarehouseLot NumberQuantity On Hand
-
Step 4Match and accrue
Receipt NumberPurchase OrderReceipt DateWarehouse
-
Step 5Review variances
Journal Entry NumberDateDescriptionTotal Debit
Process steps
Follow the process from start to finish. Select a step to see who acts and what changes.
Post open labour and movements
Shop Floor Supervisor checks ProductionLog and StockMovements for missing or duplicated activity. Accountant resolves any unposted JournalEntries.
Close completed work orders
Production Planner closes completed WorkOrders after Accountant reviews their costs. Orders still running carry WIP forward; closing an accounting period does not complete them.
Reconcile inventory to the ledger
Accountant compares Inventory Valuation with the inventory accounts in ChartOfAccounts and investigates differences by movement and posting date.
Match and accrue
Accountant reconciles accepted GoodsReceipts with SupplierInvoices and reviews MatchExceptions. Receipt postings already establish the received-not-invoiced balance; adjustments correct missing or inaccurate amounts without duplicating that accrual.
Approval required
Review variances
Accountant reviews Work Order Variance and proposes changes to CostStandards. The assigned Approver approves any standard activation after reviewing CostRollups; the revaluation posts in the approved period.
Approval required
Lock
Accountant confirms the reconciliations and moves AccountingPeriods from Closing to Locked. The record retains LockedBy and LockedDate. Reopening is restricted to a named Admin and requires a logged reason.
Approvals and exception handling
2 approvals required in this process
-
Review variances
Accountant signs · lock waits
CostRollups, CostStandards, JournalEntries -
Lock
Accountant signs · closes the process
AccountingPeriods - Corrections retain their source movement or invoice reference.
- Receipt accruals are reconciled before additional journals are prepared.
- A locked period must be reopened through its controlled action before any backdated posting is accepted.
When the process needs attention
-
duplicate
Post open labour and movements
Shop Floor Supervisor checks ProductionLog and StockMovements for missing or duplicated activity.
-
variance
Review variances
Accountant reviews Work Order Variance and proposes changes to CostStandards.
Records and postings
| Stage | Records | Dr | Cr |
|---|---|---|---|
| 1 Post open labour and movements | ProductionLogStockMovementsJournalEntries | Outstanding production and movement postings |
|
| 2 Close completed work orders | WorkOrdersJournalEntriesJournalEntryLines | Remaining WIP balance to the appropriate variance accounts |
|
| 3 Reconcile inventory to the ledger | InventoryChartOfAccountsJournalEntryLines | Reviewed corrections only |
|
| 4 Match and accrue | GoodsReceiptsSupplierInvoicesMatchExceptionsJournalEntries | Received-not-invoiced reconciliation and required adjustments |
|
| 5 Review variances | CostRollupsCostStandardsJournalEntries | Approved standard revaluation if scheduled for this period |
|
| 6 Lock | AccountingPeriods | No new entry; the period is closed to posting |
Quality Inspector dispositions (Accept, Reject, Rework, ReturnToVendor). Accept → StockMovement posts a Receipt into the destination Warehouse and auto-posts a JE (Inventory Dr / GR-IR Cr). Reject moves to Quarantine warehouse.Receiving & Incoming QC
Process 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.
Run by an agent
Agent support
The configured workflows must prevent an agent from approving its own drafts, authorising payments or releasing a quality hold. Approver signs the purchase and payment decisions; Quality Inspector signs quality release. Rehearsal must verify the audit record and refusal of unauthorised actions before the agent is allowed to write.
# Example after configuration
$ curl -fsSL https://www.erp.ai/skill.md | paste into your agent
› period close · post open labour and movements on ProductionLog, StockMovements, JournalEntries
✓ Shop Floor Supervisor checks ProductionLog and StockMovements for missing or duplicated activity.
› period close · close completed work orders on WorkOrders, JournalEntries, JournalEntryLines
✓ Production Planner closes completed WorkOrders after Accountant reviews their costs.
› period close · reconcile inventory to the ledger on Inventory, ChartOfAccounts, JournalEntryLines
✓ Accountant compares Inventory Valuation with the inventory accounts in ChartOfAccounts and investigates differences by movement and posting date.
› period close · match and accrue on GoodsReceipts, SupplierInvoices, MatchExceptions, JournalEntries
✓ Accountant reconciles accepted GoodsReceipts with SupplierInvoices and reviews MatchExceptions.
› period close · review variances on CostRollups, CostStandards, JournalEntries
⏸ approval · waiting for the accountant
# 1 more stage after approval: lock
Other processes
5 morePlan to produce
From a demand line to finished goods in stock: MRP, release, dispatch, execution and completion, with the gates where a person decides.
6 stages · 2 approvals
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
Quality hold to release
How a failed inspection is contained, investigated and closed, and how a held lot gets back into use or out of the building.
6 stages · 3 approvals
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