How WIP Qty and WIP Value is Calculated

All inventory is gathered where parts are not consigned, and are not in In-Plant-Stores, and are not deleted AVLs (and within the part class/type or part number range, if selected)

Then All Kit Shortages are found for Work Orders with a BALANCE, and not closed nor cancelled.

Calculations are made for each part found short to arrive at values for WIP calculation:     Required Parts per work order (ReqPerBld) = the actual quantity issued + Short Qty
Required Parts per assy(ReqPerEa) = ReqPerBld / Build Qty            Required Balance (ReqPerBal) = ReqPerEa * Work Order Balance


For Regular Shortages, where short quantity > 0 but less than the ReqPerBal, shortage = shortqty       
For Regular Shortages, where short quantity > 0 but more than the ReqPerBal, shortage = ReqPerBal           Otherwise shortage = zero

Then Quantity in WIP (QIW) = ReqPerBal – shortage.  Because there may already a value in the Report quantities for wip, the value is adjusted to be Report Qty + QIW.

For Line Shortages (parts are not on BOM) AND Over-Issues     Where shortage = the assembly for the work order 
The WIP = Report Wip plus ActQty plus      Either    If shtqty < 0, shotqty,       If shtqty => 0, zero              Or Balance        Whichever is  less  OR, if neither of the above yields a value, zero;

Or, for over-issues:

The WIP = if shtqty < 0,  Report Wip plus ActQty plusShtQty  = if shtqty => 0,  Report Wip plus ActQty 
 
Then the WIP Quantities are extended either by the Standard Cost, or the average of recent PO’s, depending on the option selected.

The Line item shortages are considered as in the WIP account all the way through until the Kit is closed within the Kitting module. Upon Closing the kit within the Kitting module the Line Item Shortages are then costed out and credited out of WIP account and debited in the Mfgr Variance account. So the “Inventory WIP Valuation Report” by Work Order by Standard Cost  does NOT deduct those line item shortages as the product is moved into FGI. 

Note:  It is VERY important that the Account Number for WO-WIP is NOT the same as the WIP Account Number.  For further detail see Article #3061.