Open Forum

1.  WIP Reconciliation

Posted 03-17-2017 17:04

Good Evening Everyone,
I will do my best to explain what I am trying to do, so I hope I don't confuse the situation more.

When we run our Inventory Valuation Report WIP in NAV 2013 R2, I can see from month to month that the production order pieces fall off, however there are some that have never left the report.  Some totals are  pennies here an there, but others are significant amounts.

How can I get these amounts to clear so I can better manage my WIP, and keep this report inline with the trial balance?

Please let me know your thoughts, or questions......

Thanks,

Diane



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Diane Morris
Manufacturing Controller
Joseph's Gourmet Pasta Company
Haverhill MA
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2.  RE: WIP Reconciliation

Posted 03-17-2017 17:58
Edited by Dave Wiser 03-17-2017 19:28
I'm assuming you are finishing production orders and running adjust costs?  If not, there will be stray amounts in WIP until those two things happen.  When you look at the report, are there balances on the lines for the "Released" production orders?

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Dave Wiser
Controller
Beckwith & Kuffel
Seattle WA
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3.  RE: WIP Reconciliation

Posted 03-20-2017 10:48
Hi Diane,

I don't have an answer, but have encountered this issue (we are also on 2013 R2).  In our case, it seems to be happening when we correct over-output (IE production order is for 1 but 2 are output in in error) with negative output.  For some unknown reason, adjust cost seems to make erroneous adjustments at least some of the time. 

We are closing production orders and running adjust cost.  For what it is worth, the start of this seemed to correspond with us moving to advanced warehousing. I have been working with our partner to trouble shoot this.  I'll let the group know if we come up with a solution.

 

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Bill Kilrain
Director Planning and Budgeting
Sign-Zone Inc.
New Hope MN
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4.  RE: WIP Reconciliation

Posted 03-20-2017 11:43
I'm fairly certain that there is a hot fix or part of a cumulative update that fixes this. We had this issue at my last company, assuming you are still seeing finished production orders. 

See if you can reach out to Linda Landers at Ellsworth Corporation. She may be able to point you in the right direction.

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Amanda Mayer
New View Strategies
Milwaukee WI
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5.  RE: WIP Reconciliation

Posted 03-21-2017 08:37
Hello All,

We have ran into this as well.  Our issue stems from over output as well and correcting the over output on the wrong operation code of the production order.  On production orders, output is placed into inventory if the next operation code is blank.  Here is what we discovered:

  1. Supervisors were adding lines to and removing lines from production order routers.  When they did this, NAV renumbers the previous operation code and next operation code.  If an operation is marked finished, the previous operation code and next operation code are left blank and the remaining operation codes are filled in.
  2. If the item returned to an operation code with a blank next operation code and the worker enters output, this is placed in inventory.
  3. When we saw this, we would enter a negative quantity in our last operation to correct output.  However, this caused valuation issues because the output was not removed from the same operation that placed it into stock.

I am working to figure out how to correct WIP and COGS.  If anyone has ideas, I would love to hear them.

Now, we make sure to fill in the previous and next operation code if we make changes and if we have over output we investigate to find the operation code the output came from.

Thank you,

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Kristina Frank
Controller
Cline Tool & Services
Newton IA
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6.  RE: WIP Reconciliation

Posted 03-22-2017 10:28
Kristina,
That is a hugely helpful response probably for many NAV users who will hopefully come across this post when dealing with WIP Valuation issues.  I'm sure it took a while to figure out. Unfortunately, I don't have a solution to adjust/correct WIP.  This is probably one to send to Microsoft and see if Tom Blaisdale and his support team (sp?) have any suggestions.

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Ken Sebahar
Vice President - Operations
Solution Systems, Inc.
Rolling Meadows IL
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