Parkinson Accounting Systems

MAS 90 & MAS 200 TRAINING CLASS Work Order

Work Order Setup

1.

SETTING UP WORK ORDER

On the Work Order Setup menu, click Work Order Options. Each module can be customized to fit your company's specific accounting requirements. Work Order Options presents a series of options allowing you to select features most appropriate to your business.

Print Work Order Travelers Upon Release Select the Print Work Order Travelers Upon Release check box to print travelers automatically when work orders are released using Work Order Transaction Entry. Clear the check box to manually select work orders for which travelers are printed using Work Order Traveler Printing. A traveler tracks material to be issued and steps to be performed on a work order. Print Material Listing on Work Order Traveler

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Parkinson Accounting Systems

Work Order Setup

Select the Print Material Listing on Work Order Traveler check box to include material information on the traveler in addition to the step information. Clear the check box to exclude material information from the traveler. Material Print Format Select Material First to print material first followed by operational steps on the traveler. Select Material Mixed to print material mixed with the operations to which they are issued. This option is available only if the Print Material Listing on Work Order Traveler check box is selected. Automatically Increment Steps By Type a multiple of 10 (from 10 to 100) to be used as the increment when entering work order step numbers automatically in Routing Maintenance or Work Order Entry. Retain Work Order Transaction Detail Select the Retain Work Order Transaction Detail check box to retain transaction detail for work orders in the Cost Ledger file. Because each work order can accumulate many transactions, this can require a large amount of disk storage space. Clear the check box if you do not want to retain transaction detail for work orders; the On Demand Cost Ledger cannot be printed. Print WOs on Back Order Fill Report Select the Print WOs on Back Order Fill Report check box to include work order component requirement information on the Back Order Fill Report. Clear the check box to exclude work order component requirement information from the report. NOTE Your response at this option determines whether work order component requirement information prints on the Back Order Fill Report in this module and in the Sales Order, Inventory Management, and Purchase Order modules. Future Days to Print Work Orders Type the number of days in the future that work order component requirements will print on the Back Order Fill Report. This option is available only if the Print WOs on Back Order Fill Report check box is selected. Print Picking Sheets Select Sort by Warehouse to print picking sheets sorted by both warehouse and work order number. Select Sort by Work Order to sort by work order number only. Select None if you do not want to print picking sheets. The Sort by Warehouse option is available only if the Require Multiple Warehouses check box is selected in the Inventory Management Options window.

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Parkinson Accounting Systems Page Break by Step Number

Work Order Setup

Select the Page Break by Step Number check box to print each step number of the picking sheet on a separate page. Clear the check box to print multiple steps per page. This field is available only if Sort by Warehouse or Sort by Work Order is selected at the Print Picking Sheets field. Sort Items by Bin Location Select the Sort Items by Bin Location check box to sort items by bin location on picking sheets. Picking sheets sort by step number first, and then by bin location. Clear the check box to sort items by item number. This field is available only if Sort by Warehouse or Sort by Work Order is selected at the Print Picking Sheets field. Print Picking Sheets Upon Work Order Release Select the Print Picking Sheets Upon Work Order Release check box to select picking sheets for printing automatically when work orders are released during Work Order Transaction Entry. Clear the check box to manually select work orders for which picking sheets will print during Picking Sheet Printing. This field is available only if Sort by Warehouse or Sort by Work Order is selected at the Print Picking Sheets field. Allow Memo Inquiry from Data Entry Select Yes if memos will be accessed in Work Order Transaction Entry for review purposes only. Select No to deny any memo access. Select Maintenance to allow the review, maintenance, and creation of memos. Memos can contain information pertinent to a specific work order. Addition of Work Centers and Op Codes Select Routing Maint to allow the addition of new work centers and operation codes using Routing Maintenance. Select W/O Entry to allow additions using Work Order Entry. Select Both to allow additions using both tasks. Select None if additions are not allowed. Work Order Issue Method Select an issue method to determine how material, labor, and outside processing transactions are created. The issue method selected at this field determines the default setting at the Issue Method field on the Work Order Entry Header tab. Automatic: Material, labor, and outside processing transactions are automatically generated when the work order is released if Yes or Available Quantity Only is selected at the Auto Issue Material Transactions field, and the Auto Generate Labor Transactions and Auto Generate Outside Processing check boxes are selected on the Work Order Options Main tab.

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Parkinson Accounting Systems

Work Order Setup

Backflush: Material, labor, and outside processing transactions are automatically generated when a completion transaction is entered if Yes or Available Quantity Only is selected at the Auto Issue Material Transactions field, and the Auto Generate Labor Transactions and Auto Generate Outside Processing check boxes are selected on the Work Order Options Main tab. Manual: Material, labor, and outside processing transactions are entered manually during Work Order Transaction Entry. Auto Issue Material Transactions Select Yes to generate material issue transactions for components when work orders using the Automatic issue method are released, or when completion transactions are entered for work orders using the Backflush method. Select No if you do not want to generate material issue transactions automatically. Select Available Quantity Only to generate material issue transactions for components up to the available quantity of each component item when the Automatic issue method is used for the work order. Auto Issue Material Shortage Report Format Select Sort by Component to sort the Auto Issue Material Shortage Report by component item number. Select Sort by Work Order to sort by work order number. Select Both Formats to print the report twice, once sorted by component number and once sorted by work order number. Select None if you do not want to print the Auto Issue Material Shortage Report. This field is available only if Yes or Available Quantity Only is selected at the Auto Issue Material Transactions field. NOTE If Manual is selected at the Work Order Issue Method field, material transactions are not automatically created. Auto Generate Labor Transactions Select the Auto Generate Labor Transactions check box to automatically create labor transactions for work orders on their release if Automatic is selected at the Work Order Issue Method field and for work orders on their completion if Backflush is selected at the Work Order Issue Method field. This option is available for all cost completion methods. NOTE If Manual is selected at the Work Order Issue Method field, labor transactions are not automatically created. Auto Generate Outside Processing Select the Auto Generate Outside Processing check box to automatically generate outside processing transactions for work orders on their release if Automatic is selected at the Work Order Issue Method field and for work orders on their completion if Backflush is selected at the Work Order Issue Method field. This option is available for all cost completion methods. NOTE If Manual is selected at the Work Order Issue Method field, outside processing transactions are not automatically created.

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Parkinson Accounting Systems

Work Order Setup

Print Missing Cost Report Select Yes to include this report on the Completion/Close Selection window as part of the Work Order Transaction Journal update. Select No to exclude this report. Select One W/O per Page to print one work order per page. Missing costs can be caused by transactions not being entered or by the actual cost being less than the planned cost. Minimum Variance Percent to Print Type the percentage used to indicate a missing cost entry. Any completed work order that shows cost variances that are less than the planned cost, and the variance is equal to or greater than the percentage entered here, prints on the Completion Missing Cost Report or the Close Missing Cost Report, depending on whether the selection for this option is made in the Completion or Close section on the Work Order Options Additional tab. This field is available only if Yes or One W/O per Page is selected at the Print Missing Cost Report field. Print Var from Standards Rpt Select Yes to include this report on the Completion/Close Selection window as part of the Work Order Transaction Journal update. Select No to exclude this report. Select One W/O per Page to print one work order per page. Any completed work order that shows a cost variance from the planned cost, and the variance is equal to or greater than the

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Parkinson Accounting Systems

Work Order Setup

percentage entered at the Minimum Variance Percent to Print field, prints on the Completion Variance From Standards Report or the Close Variance From Standards Report, depending on whether the selection for this option is made in the Completion or Close section on the Work Order Options Additional tab. Minimum Variance Percent to Print Type the percentage that a work order must vary in order to be printed on the Completion Variance From Standards Report or the Close Variance From Standards Report, depending on whether the selection for this option is made in the Completion or Close section on the Work Order Options Additional tab. Any completed work order that shows a cost variance from the planned cost applied, and the variance is equal to or greater than the entered percentage, prints on the report. This field is available only if Yes or One W/O per Page is selected at the Print Var from Standards Rpt field. Print Back Order Fill Report Select the Print Back Order Fill Report check box to print the Back Order Fill Report following the Work Order Transaction Journal update if completion transactions are entered. Clear the check box if you do not want to print the report. The Back Order Fill Report prints the back orders that can be filled from completed work orders. Print WO Close Cost Ledger Select Yes to include this report on the Completion/Close Selection window as part of the Work Order Transaction Journal update. Select No to exclude this report. Select One W/O per Page to print one work order per page. The Work Order Close Cost Ledger shows all transactions posted to the work order since it was opened. This option is available only if the Retain Work Order Transaction Detail check box is selected on the Work Order Options Main tab. Max Number of Months to Schedule Type the maximum number of months that work order scheduling can be performed without interruption. If work order scheduling exceeds the maximum number of months, a warning message appears; however, scheduling can still proceed. NOTE If no maximum number is entered, or if a large number of months is entered, scheduling can take a considerable amount of time to perform. Print Work Order Labels Labels print following the Work Order Transaction Journal update if completion transactions are entered. Select the type of items for which work order labels will be printed. Explode Sub-Assemblies During Work Order Entry

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Parkinson Accounting Systems

Work Order Setup

Select the Explode Sub-Assemblies During Work Order Entry check box to explode subassemblies during Work Order Entry. Clear the check box if you do not want to explode subassemblies during Work Order Entry. Your selection at this option appears as the default response in Work Order Entry. This field is available only if the Bill of Materials module is integrated with Work Order and if Material Requirements Planning is not installed.

Require Departments for Employees Select the Require Departments for Employees check box to include a two-digit departmental identification number as the leading component of all production employee numbers. Clear the check box to exclude the departmental identification number. If you use departments in the Payroll module, selecting this check box allows you to use the same type of numbers assigned to payroll employees. Retain Work Order Line Detail Select the Retain Work Order Line Detail check box to retain line detail, summary quantities, and costs for each step and each component. Clear the check box if you do not want to retain this information. This field is available only if the Retain Work Order History check box is selected. History Purge Option Password

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Parkinson Accounting Systems

Work Order Setup

Type the password to be used to purge production history in the Work Order History Report task. If you do not want to secure the Purge option, leave this field blank. Next Automatic Work Order Template Number Type the next work order template number to be assigned when using the Automatic Template Number feature in Work Order Entry. A template is a standardized method for manufacturing a product that can be copied to create new work orders. Number of Days to Retain Closed Work Orders Type the number of days to retain closed work orders in the Open Work Order file until Work Order Purge is performed. Enter 0 (zero) to purge work orders immediately after a close transaction is entered. Data Type Select Date to define this user-defined field as date oriented. Select Text to define this user-defined field as text oriented. As you establish the record for each work order in Work Order Entry, you can enter text at each field defined as text oriented, and you can enter a date at each field defined as date oriented. If you leave a User-Defined Field Description field blank during this setup, that sort field is not available during data entry or report printing. Retain Work Order History Select the Retain Work Order History check box to retain work order history information. The header, completion, and memo information for work orders is retained; this information can be printed on the Work Order History Report and viewed using Work Order History Inquiry. Clear the check box if you do not want to retain this information. Retain Transaction History Select the Retain Transaction History check box to retain transaction history information; this can require a large amount of disk storage space. Clear the check box if you do not want to retain this information. This field is available only if the Retain Work Order Line Detail, Retain Work Order History, and Retain Transaction Work Order Detail check boxes are selected. User-Defined Fields (1 through 4) Description Type a description for each user-defined field. These fields are used to categorize work orders by type or to indicate additional dates. The user-defined fields can be used to sort information on reports. Each description entered appears as a field name on the Work Order Entry Header tab.

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Parkinson Accounting Systems Cost Completion Method

Work Order Setup

Select a cost completion method to determine which costs are used to calculate the completion unit cost. Select one of the following methods: NOTE If Automatic or Backflush is selected at the Issue Method field on the Work Order Entry Header tab and the Auto Generate Labor and Auto Generate Out-Process check boxes are selected on the Work Order Entry Additional tab, labor and outside processing transactions are automatically created for work orders. Actual: The completion unit cost is based on the costs updated to the Work in Process accrual account. Work orders created with the Manual or Backflush issue method have a zero balance in the Work in Process accrual account after each completion entry is recorded. Whether the cost in the Work in Process accrual account represents the full-planned quantity or a partial quantity, the system assumes that all costs applicable to the completion entry are entered and that the cost in the Work in Process accrual account represents only that completion entry. For example, if the planned quantity for the work order is 100 items and you are processing a completion entry for the first 50 items, 100 percent of the cost in the Work in Process accrual account is used in the completion calculation for the 50 items. Work orders created when Automatic is selected at the Issue Method field on the Work Order Entry Header tab use the work order percent complete amount to allocate the costs updated to the Work in Process accrual account before the completion entry is recorded. This method leaves a zero balance in the Work in Process accrual account when the last completion entry for the work order is recorded. Planned: The completion unit cost is based on the standard costs that are calculated when the work order is created. The work order percent complete is used to calculate the cost for each completion. The Planned cost completion method may also create a positive or negative balance in the Work in Process accrual account if Yes or Available Quantity Only is selected at the Auto Issue Material field and the Auto Generate Labor and Auto Generate Out-Process check boxes are selected on the Work Order Entry Additional tab, and the automatically created material, labor, and outside processing transactions are edited. The automatically created transactions are based on the standard costs (calculated when the work order is created), and if they are edited, the variances between the standard costs and the edited costs are posted to the Work in Process accrual account. These variances are ignored by the completion calculation which always uses the standard costs. Lower of Plan/Actual: This method checks each step of the work order to determine if the standard or the actual cost is lower. The lower cost for each step determines which method is used to calculate the completion costs. If the standard cost is lower, the completion cost is calculated using the Planned Cost Completion method. If the actual cost is lower, the completion cost is calculated using the Actual Cost Completion method. This method leaves a zero balance in the Work in Process accrual account when the last completion entry for the work order is recorded.

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Parkinson Accounting Systems

Work Order Setup

Work Order Scrap Enter the general ledger account number to be debited when a portion of a work order is scrapped. Click the Lookup button to list all general ledger account numbers. Any remaining costs in "work in process" after all work order completion transactions are processed are debited to this account when the work order is closed. Default WIP Direct Enter the general ledger account number to be used in Work Order Transaction Entry to post the direct cost of work in process (material, labor, and outside processing costs). Click the Lookup button to list all General Ledger account numbers. Default WIP Variable Overhead Enter the general ledger account number to be used in Work Order Transaction Entry to post the work-in-process variable overhead amount. Click the Lookup button to list all General Ledger account numbers. Default Applied Fixed Overhead

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Parkinson Accounting Systems

Work Order Setup

Enter the general ledger account number to be used as the offsetting account to the Work in Process Fixed Overhead account for posting fixed overhead costs. Click the Lookup button to list all General Ledger account numbers. Default Special Item Purchases Enter the general ledger account number that will appear as the default in Work Order Transaction Entry when posting completion transactions for noninventory items. Click the Lookup button to list all General Ledger account numbers. This account is debited with the value of any special items being completed. Default WIP Fixed Overhead Enter the general ledger account number to be used in Work Order Transaction Entry to post the work-in-process fixed overhead amount. Click the Lookup button to list all General Ledger account numbers. Default Applied Direct Enter the general ledger account number to be used as the offsetting account to the Work in Process Direct account for most labor or machine operations. Click the Lookup button to list all General Ledger account Default Applied Variable Overhead Enter the general ledger account number to be used as the offsetting account to the Work in Process Variable Overhead account for posting variable overhead costs. Click the Lookup button to list all General Ledger account numbers.

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Parkinson Accounting Systems

2. Work Center Maintenance

Work Order Setup

Queue Time Queue time is the number of hours that a work order sits in front of a work center before it starts. It also includes the "move" time required to physically move partially completed items from the previous operation to the next work center. Queue time is expressed in production hours. Increasing the queue time can reduce the number of hours committed at overloaded work centers. Queue time is used only for scheduling purposes and does not affect the work center capacity. In most manufacturing companies, the actual "lead time" through the shop is composed of over 90 percent queue time. By varying the amount of queue time you plan into your work orders, you control the planned lead time of a job. Queue time is typed at the Queue Time field in the Work Center Maintenance window. Queue time does not necessarily apply to all operations performed at a work center. Typically, a "setup" operation has the queue time applied to it, and is then followed immediately by one or more operations that can be performed without any additional wait. You can control whether queue time is used for an operation using the Ignore Queue Time check box in Operation Code Maintenance or Routing Maintenance. NOTE The queue time affects the number of operational hours available at a work center for the purpose of scheduling a work order, but is not included in the total scheduled hours for the purpose of determining work center capacity. www.pas90.com 12

Parkinson Accounting Systems Efficiency Percentage

Work Order Setup

Type the percentage of efficiency for this work center, taking into account any necessary adjustments for changes in personnel or equipment. This percentage is used to calculate the amount of time to schedule for an operation. This percentage is used to reflect maintenance problems and other factors that can reduce the actual production capacity. If a work center is working at full capacity, this field should be set to 100 percent. For scheduling purposes, the number of hours available for production at a work center is calculated as follows: (Standard Work Center Hours for Day x Work Center Efficiency Percent) / 100 This percentage should be maintained regularly to reflect the current status of the work center. Typically, the work center efficiency percentage should be at 100 percent to reflect the normal productivity of the work center. If a work center normally has two machines in operation and one of the machines is down for maintenance, the efficiency for the work center is reduced to 50 percent. Min Scheduling Time Period Enter the minimum number of minutes expected for the completion of any operation at this work center. This time period is used in calculating schedules in Work Order Entry. This prevents scheduling of unrealistically short time periods when small quantities of components are processed. Standard Hours Available in Work Center Type the number of hours that this work center is available for operation on each day of the week. If no hours are entered for any day, a default of 8 hours for each day is used for Monday through Friday. NOTE The number of hours entered must be consistent with the method you employ for defining operation codes for this work center. If you define the production rate for this work center on the basis of each machine in Operation Code Maintenance, you would enter 32 for 4 machines that are available 8 hours per day, and enter 4 at the Number of Workers/ Machines field. If, however, you define the production rate based on all 4 machines as a single unit, you would enter 8, and enter 1 at the Number of Workers/Machines field. Production rates are defined by hours per operation, hours per lot, or operations per hour in Operation Code Maintenance.

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Parkinson Accounting Systems

3. Operation Code Maintenance

Work Order Setup

On the Work Order Setup menu, click Operation Code Mainenance. Operation Code Maintenance provides you with flexibility in determining how costs and overhead are calculated and what general ledger accounts are used to post production costs. Operation codes define the various processes that are performed to manufacture the final product or parent item. Operation codes are defined separately for each work center to identify the factory or shop location at which operations are performed. NOTE You must set up at least one operation code. Each of the work centers defined using Work Center Maintenance is capable of performing one or more operations. Use Operation Code Maintenance to define these operations for each work center, enter standard cost rates for the operations, assign general ledger accounts associated with each operation to post production costs, and define overhead calculation rates. Maintaining this information for each operation code provides you with complete flexibility. If the Charge Labor at Employee Rate check box is selected in the Work Center Maintenance window for the work center, the rate per hour entered at the Planned Cost field is used only to calculate the planned cost. Actual cost is calculated using the rate entered at the Standard Labor Rate field in Production Employee Maintenance. The Planned Cost field is normally used only for labor or machine operations. You can leave the Planned Cost fields blank for outside process steps because the standard rate(s) can vary from work order to work order based on individual bids. Overhead can be applied to labor, material, and/or outside processing costs. By applying overhead based on hours, overhead is applied on labor only. By applying overhead based on cost, overhead is www.pas90.com 14

Parkinson Accounting Systems

Work Order Setup

applied to labor costs plus any material and outside processing costs applied to this line. Click Copy to copy operation information from another work center and/or operation. Click Accounts to define general ledger accounts to debit and credit with production costs. Click the Printer button to print a listing of all or a specific range of operation codes. Work Center Enter the work center code representing the work center to add or maintain. Click the Lookup button to list all work centers. A new work center can be added "on the fly." A window similar to the Work Center Maintenance window appears; some nonessential fields are omitted to speed data entry. Access Work Center Maintenance at a later time to complete the remaining entries for the new code. Ignore Queue Time Select the Ignore Queue Time check box to ignore any scheduled queue time assigned to this work center in Work Center Maintenance for this operation. Clear the check box to accept the queue time assigned to this work center for this operation. Queue time is not used in the calculation of the time required to complete an actual work order step. Queue time is used during the scheduling process. The setting at this field will be the default in Routing Maintenance and Work Order Entry. Planned Cost Divisor Type the divisor that will be used to determine the actual rate per hour and/or rate per piece to apply for the operation. Example: If your planned cost rate is typically $1.50 per 1000 pieces, you would enter the planned cost rate as 1.50 per piece and a planned cost divisor of 1000. This applies $0.0015 per piece when the operation is processed. Variable Overhead Type the variable overhead rates to charge. Variable overhead can be used to allocate overhead costs that vary with the level of production, such as electricity and other utilities. NOTE Overhead can be applied to labor, material, and/or outside processing costs. By applying overhead based on hours, overhead is applied on labor only. By applying overhead based on cost, overhead is applied to labor costs plus any material and outside processing costs applied to this line. *** The ability to add codes on the fly allows you to complete the data entry process in an efficient, uninterrupted manner. When performing Operation Code Maintenance, you can enter new work center codes. When performing Routing Maintenance and Work Order Entry, you can enter new work center codes and new operation codes. When performing Work Order Entry, you can enter new inventory items.

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Parkinson Accounting Systems

Work Order Setup

If you are entering a new work center code, the window that appears is similar to the Work Center Maintenance window. If you are entering a new operation code, the window that appears is similar to the Operation Code Maintenance window. If you are copying from an operation code, you must also enter the appropriate work center code. You cannot establish new work centers or operation codes using Work Order Entry if Routing Maint or None is selected at the Addition of Work Centers and Op Codes option in Work Order Options. Operation Code Enter the operation code representing the operation to assign to the specified work center. Click the Lookup button to list all operation codes. You can use up to five alphanumeric characters to identify each operation code. To establish a standard set of operation codes for use by all work centers, first establish a default or master work center (for example, STND or MAST) and define all of the operation codes for that work center. The Copy button can be used to copy these standard operation codes whenever a new operation code is created for a work center. This method is especially useful if the same rates and general ledger accounts are used for each operation code, regardless of the work center. Run Time Format Select Hours/Operation to calculate operation run time in terms of hours per operation; select this option if it takes more than an hour to complete one operation. Select Lot to calculate operation run time as a fixed amount of time per lot (for example, a setup operation); select this option if an operation always takes a fixed amount of time. Select Operations/Hour to calculate operation run time in terms of operations per hour; select this option if you complete more than one operation per hour. Planned Cost Type the standard rate per hour and/or rate per piece to charge for this operation. You can enter either rate or both rates. For example, you can charge $20.00 per hour for a machine plus $0.05 per piece. If the Charge Labor at the Employee Rate check box is selected for the work center in Work Center Maintenance, the rate per hour entered here is used only to calculate the planned cost. Actual cost is calculated using the rate entered at the Standard Labor Rate field in Production Employee Maintenance. NOTE This field is normally used only for labor or machine operations. You can leave these fields blank for outside process steps because the standard rate(s) can vary from work order to work order based on individual bids. Fixed Overhead Type the fixed overhead rates to charge. Fixed overhead can be used to allocate factory overhead costs that do not vary with the level of production, such as rent and taxes.

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Parkinson Accounting Systems

Work Order Setup

WIP Direct Account Enter the Work In Process account to debit with the direct cost of material, labor, and outside process costs. This account is debited with the actual amount, regardless of whether the item produced is valued at standard or actual cost. When a work order completion transaction is processed, any variance is recognized for a standard cost valued item. WIP Variable Overhead Account Enter the Work In Process Variable Overhead account to debit with the overhead amount based on the definition of variable overhead for this operation code. Applied Fixed Overhead Account Enter the Applied Fixed Overhead account to credit with the fixed overhead costs applied to the work order. This account offsets the Work In Process Fixed Overhead account. If the Fixed Overhead fields in Operation Code Maintenance are blank, this field can be skipped. WIP Fixed Overhead Account Enter the Work In Process Fixed Overhead account to debit with the overhead amount based on the definition of fixed overhead for this operation code. Applied Direct Account Enter the Applied Direct account to credit with the direct cost of this operation. This account offsets the Work In Process account for most labor or machine operations. Applied Variable Overhead Account www.pas90.com 17

Parkinson Accounting Systems

Work Order Setup

Enter the Applied Variable Overhead account to credit with the variable overhead costs applied to the work order. This account offsets the Work In Process Variable Overhead account. If the Variable Overhead fields in Operation Code Maintenance are blank, this field can be skipped. ***FACTORY OVERHEAD There are three components of the total cost of manufacturing finished products: direct materials, direct labor, and factory overhead. Direct materials represent the cost of the material that is directly used in manufacturing a product. Direct labor represents the wages of employees who worked to convert the raw material into the finished products. Factory overhead includes all of the remaining costs of operating the factory, including power, heat, lights, taxes, insurance, depreciation on the equipment, maintenance related to the factory and equipment, supplies, and support and supervision wages. The costs associated with factory overhead are those costs that are necessary to support the manufacturing process but cannot be directly attributed to a single job. Even though factory overhead cannot be specifically identified with individual jobs, it is as much a part of the manufacturing costs as direct materials and labor. In many cases, factory overhead can be the largest cost of manufacturing. FACTORY OVERHEAD RATE EXAMPLES To illustrate the process of determining factory overhead rates, assume that a company's whole plant is under one roof, and has only one work center. Assume also that there are five, full-time production employees in the plant. The total fixed costs that will be incurred in the new year are calculated as illustrated below.

Shop Supervision Rent 72000.00

$45000.00

Insurance

15000.00

Depreciation 51800.00 Total Fixed Costs $183800.00

Because the variable costs vary depending on the amount of production, the costs for the year are calculated based on different percentages of full production capacity, as illustrated below. Percentage of Capacity 80% 90% 100%

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Parkinson Accounting Systems Indirect Labor Variable Utilities Maintenance Total Variable Costs $12800.00 4800.00 2240.00 $19840.00 $14400.00 5400.00 2520.00 $22320.00

Work Order Setup $16000.00 6000.00 2800.00 $24800.00

Now that total costs have been determined, overhead rates can be calculated. For this example, direct labor hours are used as the basis for determining the rates. This method is historically the most common basis of calculating factory overhead. In this example, if the factory is utilized at 100 percent capacity, there will be 10,000 hours of direct labor. Dividing the total fixed costs and total variable costs by the number of hours determines the rate per hour to be used. The number of labor hours and the resulting rate per hour will be different based on the production capacity of the factory as illustrated below. Percentage of Capacity Total Fixed Costs Divided by Labor Hours Fixed Overhead per Hour Total Variable Costs Divided by Labor Hours 80% $183800.00 8000 $22.98/HR $19840.00 8000 90% $183800.00 9000 $20.42/HR $22320.00 9000 $2.48/HR 100% $183800.00 10000 $18.38/HR $24800.00 10000 $2.48/HR

Variable Overhead per Hour $2.48/HR

If the projection for the year is to use 100 percent capacity of the factory, the fixed overhead rate of $18.38 per hour and variable overhead rate of $2.48 per hour should be used. As this example shows, the variable overhead rate is a fixed rate, regardless of the percentage of production capacity that is assumed; however, the fixed overhead rate varies with the percentage of production capacity. The application of any overhead rate only approximates the actual overhead costs. Over time, there will be either an under- or over-application of overhead to work in process.

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Parkinson Accounting Systems Defining Fixed and Variable Components of Factory Overhead

Work Order Setup

Some of the costs included in factory overhead are fixed costs that do not vary with the amount of production. Costs such as rent, property taxes, and depreciation are commonly termed "fixed overhead costs." Other costs, such as the amount of electricity or gas consumed in furnaces to heat parts or the amount of lubricating oil used for machinery, depend on how many hours the equipment is actually producing product. These costs are called "variable overhead costs" because they vary with the amount of product produced. While it is acceptable from an accounting standpoint to apply factory overhead at the end of the accounting period, this does not allow for timely reporting of manufacturing costs when work orders are completed to inventory. Instead, it is customary to apply factory overhead to each production order using predetermined factory overhead rates. The Work Order module allows you to define both fixed and variable overhead rates, and to base them on hours, a percentage of cost, or a combination of both. The overhead rates are maintained for each operation code using Operation Code Maintenance. This option allows you to maintain separate overhead rates for different operations performed at the same work center. Adjusting Factory Overhead Rates Because factory overhead rates are an approximation of actual overhead costs, there will be either an under- or over-application of overhead to work in process. It is important to monitor the overhead costs allocated so that overhead rates can be fine-tuned to reflect actual costs more accurately. All factory overhead costs allocated to work orders are posted to the general ledger using the Applied Fixed Overhead and Applied Variable Overhead accounts defined for the operation code in Operation Code Maintenance. Reviewing the amounts posted to these accounts allows you to monitor the accuracy of the factory overhead rates. Because a separate account can be assigned to each operation code, you can post the applied overhead amounts to the General Ledger in as much detail as you want. Usually, it is useful to post to different Applied Overhead accounts by work center. It is strongly recommended that different accounts be used for the applied fixed overhead and applied variable overhead amounts. When recording actual factory overhead costs to the General Ledger, you can debit the Applied Overhead accounts. At the end of each period, any remaining balance in these accounts shows how much overhead has been over-applied or under-applied. Any credit balance remaining in the Applied Overhead accounts indicates an over-applied overhead amount. Periodically, you should adjust your overhead rates to minimize the amount of over- or under-application of overhead. At the end of a period, you can clear any remaining balance in the Applied Overhead accounts by transferring the balance to the Cost of Goods Sold account. You should consult with your CPA to determine the best method for handling factory overhead and the associated general ledger postings.

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Parkinson Accounting Systems **Work Order Quantity and Time Calculations Calculating Quantity Planned

Work Order Setup

All extended quantity calculations for the work order are based on the quantity planned. The Qty Planned field on the Work Order Entry Header tab is calculated by applying the yield percentage to the quantity ordered. The calculation for the quantity planned is: Quantity Planned = Quantity Ordered / Yield Percentage Calculating the Extended Quantity The extended quantity is the amount of the component item that is planned to be used for the work order. The Extended Qty field on the Work Order Entry Materials tab is calculated by multiplying the quantity per parent by the quantity planned, and factoring the scrap percentage of the component item. The calculation for the extended quantity is: Extended Quantity = Quantity Planned * Quantity per Parent / (1 - Scrap Percentage) Calculating the Extended Time Per Step The Extended Time field on the Work Order Entry Operations tab is calculated based on the standard run type, run time, parent item type, and factor specified for a step, along with the number of parent items to be produced (for example, finished products or subassemblies) to determine the total time required to perform a step. The Standard Run Type field on the Work Order Entry Operations tab identifies how the run time for the step is defined. Select Hours per Operation to express the standard run time in terms of hours per operation. Select Fixed Time per Lot to express the standard run time as a fixed amount of time per lot, regardless of the quantity produced. Select Operations per Hour to express the standard run time in terms of operations per hour. The standard run type defaults to the Hours/Operation, Hours/Lot, or Operations/Hour field specified for the operation code for the step but can be overridden in either Routing Maintenance or Work Order Entry. Depending on the standard run type selected, you can specify either hours per operation, hours per lot, or operations per hour to indicate how much time is required per operation. Generally, if it takes more than 1 hour to complete one operation, Hours per Operation is the most convenient method to use. If you complete more than one operation per hour, the Operations per Hour method is the most convenient. The Parent Item Type field and the Factor field on the Work Order Entry Operations tab define how many parent items can be processed per operation. Select Operations/Parent if the operation must be performed more than once to produce one parent item. You can enter the number of times the step operation must be performed per parent item at the Factor field. Select Parents/Operation if performing this operation once produces more

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Work Order Setup

than one parent item. You can enter the number of parent items that are produced each time the step operation is performed at the Factor field. If the standard run type is Fixed Time per Lot, both fields are ignored because the step is performed only once per work order, regardless of the number of parent items produced.

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Work Order Setup

4.

Production Employee Maintenance

On the Work Order Setup menu, click Production Employee Maintenance to define employee numbers to be used for posting labor against a work order. For each production employee, the employee's name, employee number, standard labor rate, and social security number are entered. Standard Labor Rate Type the employee's standard labor rate per hour. This rate is used for the calculation of labor cost in the Labor Transaction Register update. NOTE An entry at this field is optional, depending on your selection at the Charge Labor at Employee Rate check box in the Work Center Maintenance window.

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Work Order Setup

5.

Labor Crew Maintenance

On the Work Order Setup menui, click Labor Crew Maintenance to group production employees defined using Production Employee Maintenance into labor crews. Using these predefined labor crews saves time when labor transactions are entered against work orders. An existing labor crew can be maintained at any time. Production employees can be added and removed from the crew, as required. NOTE You must enter at least one employee in a crew. If labor is charged at the employee rate, all the employees' rates are added together to calculate the rate per hour. For example, if you enter an amount for the labor at the Standard Labor Rate field in the Production Employee Maintenance window, the labor rate for each of the three employees will be combined.

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Work Order Setup

6.

Shop Calendar Maintenance

On the Work Order Setup menu, click Shop Calendar Maintenance to maintain a shop calendar for an entire shop and/or for individual work centers. Shop calendar entries are used for scheduling in Work Order Entry to indicate when a shop as a whole, or individual work centers in a shop, will be open or closed. All shop calendar entries are automatically sorted by date. Click Default to enter the default calendar dates for the entire shop. These dates apply to all work centers within the shop unless these dates are overridden for individual work centers to account for special circumstances (for example, if a particular work center is open for part or all of a holiday for which other work centers are closed). Start/End Date Enter the starting or ending date that the work center will be nonoperational (for example, the first day of a seasonal holiday), or the starting or ending date that the work center will be operational while other work centers in the shop are closed. If you are entering default shop calendar dates, enter the starting or ending date that the shop will be nonoperational. Active

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Work Order Setup

Select the Active check box if the work center will be available for work during the range of dates entered. Clear the check box if the work center will be nonoperational during the range of dates entered. This field is available only if you are not entering default shop calendar dates.

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Work Order Setup

7.

Tooling Maintenance

On the Work Order Setup menu, click Tooling Maintenance to define tools that are used during steps on work orders. An identification number and corresponding description is defined for every tool that is used in the production operation. Tool numbers can be assigned to work order steps. When the step is scheduled, the tool is also scheduled. **Tooling Requirements Report On the Work Order Reports menu, click Tooling Requirements Report. The Tooling Requirements Report lists tool requirements by date for work orders with scheduled tool usage. This report allows you to review tooling requirements prior to performing the actual tooling. Tooling requirements are printed in tool number order up to the specified cutoff date. If tooling is entered on a step and the step has started, the scheduled hours printed represent only the tool usage time remaining. This report can be printed for scheduled tool hours and quantities.

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Parkinson Accounting Systems

MAS 90 & MAS 200 TRAINING CLASS Work Order

Work Order Entry

1.

WORK ORDER ENTRY

Work Order Entry (Header)

On the Work Order Main menu, click Work Order Entry to create and maintain work orders. A work order is used to authorize shops to manufacture subassemblies and finished products, and details how subassemblies and products are manufactured. By entering a work order, you define what material and processes are required to manufacture the product. Work Order Entry brings together material plans defined using the Bill of Materials module with the manufacturing plans defined in Routing Maintenance to create a complete plan for manufacturing the product. Before entering work orders, if you are currently using a manual work order system or a different computerized system, you will need to perform certain preliminary data entry procedures to ensure that your system is current. In the process of entering the work order, standard time and cost information are calculated to determine the planned costs to use to measure the efficiency of the manufacturing process. The planned costs are compared against the actual cost recorded against the work order to provide variances from standard costs.

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Parkinson Accounting Systems

Work Order Entry

In addition to standard work orders, Work Order Entry allows you to enter work order templates, which are used for creating standard work orders. Work order estimates can also be entered to determine the time required to build an item and its associated costs. Estimates will not commit the quantity required for the work order for the components. After an estimate has been created, it can be printed on work order travelers, picking sheets, dispatch sheets, operation tickets, the Open Work Order Report, and the Scheduled Capacity Report. To convert the estimate to a firm-planned work order, recall the estimate by work order number and change the status to "firm planned." The inventory quantity required for the work order for the components is adjusted at this time. Based on the selection at the Make For field on the Header tab, work orders can be changed to inventory, work order, or sales order when work order completion transactions in Work Order Transaction Entry are processed. Click Defaults to set the Work Order Entry default values. Click the Printer button to print Work Order Travelers. Click the Memo button to create and maintain memos containing information pertinent to a work order. **CREATE AND USE A WORK ORDER TEMPLATE A template is a basic work order form, including the material and routing definitions required to complete one finished product, from which standard work orders can be created. Templates cannot accumulate costs or be released to the shop. Due dates cannot be assigned to templates, and templates, travelers, and picking sheets cannot be printed. In addition, you cannot assign a work order template to a sales order or to another work order. Work order templates are identified by a work order number beginning with the letter "T." All work orders that do not begin with the letter "T" are considered to be standard work orders. To create a work order template 1 On the Work Order Main menu, click Work Order Entry. The Work Order Entry window appears. 2 At the Work Order Number field, enter a work order number that starts with the letter "T." 3 Complete the information for the template in the same manner as a standard work order. You cannot enter scheduling information for a template. To use a work order template 1 On the Work Order Main menu, click Work Order Entry. The Work Order Entry window appears. 2 At the Work Order Number field, enter a new work order number.

3 At the Copy From field, enter the predefined work order template number to copy the template information.

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Parkinson Accounting Systems

Explanation of Steps and Substeps

Work Order Entry

The Work Order module uses the step number to identify a single operation that is performed during the manufacturing process. A step can be an assembly step, an inspection step, a painting step, etc. Each step is assigned a specific operation code performed at a specific work center and takes a predefined amount of time. The sequence of the step numbers controls the order in which these operations are performed. Make For Select Inventory to make the finished product for inventory. Select Work Order to make the finished product for use by another work order. Select Sales Order to make the finished product in response to a sales order. This option is available only if the Sales Order module is integrated with Work Order. If the finished product is needed for multiple work orders or sales orders, you can select Inventory or select Work Order or Sales Order to indicate the type of order that requires the largest quantity to be made. If you are entering a work order template, this field will not appear. NOTE Regardless of the entry at this field, work orders can still be completed to inventory, to another work order, or to a sales order using work order completion transactions in Work Order Transaction Entry. Item/Bill No. Enter the item number or bill number of the finished product. Click the Lookup button to list all item numbers. Special (noninventory) items can be entered by preceding the item number with an asterisk (*). A bill number can be entered at this field only if the Bill of Materials module is installed. Revision Enter the bill revision of the item to be produced by the current work order. Click the Lookup button to list all revisions for the current bill. This field is available only if you entered a bill number at the Item/Bill No. field, the Bill of Materials module is installed, and the Use Bill Revision Codes check box is selected in the Bill of Materials Options window. Option Code Enter the option codes used to define the finished product. Click the Search button to display the Option Selection window for the current bill. This field is available only if you entered a bill number at the Item/Bill No. field, if the bill has options defined, if the Bill of Materials module is installed, and if the Use Option Bills or Bill Has Options check box is selected in the Bill of Materials Options window. Qty Ordered Type the quantity of the finished product to be produced by the current work order. If you are entering a work order template, this field defaults to 1.

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Parkinson Accounting Systems

Work Order Entry

The quantity entered at this field is verified against the quantity entered at the Maximum Lot Size field on the Bill of Materials Header tab. If the quantity ordered is higher than the lot size, a warning dialog box appears. NOTE The placement of the decimal point for quantity entries for inventory items is based on the entry format established in Inventory Management Options. Yield % Enter a yield percentage for the finished product. You must enter a positive number from 1 to 100. The yield percentage is used to determine the quantity of finished products that must be produced to compensate for anticipated manufacturing losses. Issue Method Select an issue method to determine how material, labor, and outside processing transactions are created.

**Explanation of Issue Methods Material, labor, and outside processing transactions are automatically issued to a work order when using the Automatic or Backflush issue method. Use the Manual issue method to manually issue material, labor, and outside processing transactions to a work order.

1. The Automatic issue method automatically issues material, labor (if the Auto Generate Labor check box is selected on the Work Order Entry Additional tab), and outside processing (if the Auto Generate Out-Process check box is selected on the Work Order Entry Additional tab) transactions to the work order at the time the work order is released. The Automatic issue method allows for more accurate material, labor, and outside processing usage planning so that shortages can be discovered and accounted for early in the manufacturing process. You can specify the Automatic issue method for a work order by selecting Automatic at the Issue Method field on the Work Order Entry Header tab. Use the Automatic issue method to generate material, labor, and outside processing transactions automatically when the work order is released. Material, labor, and outside processing transactions are issued if Yes or Available Quantity Only is selected at the Auto Issue Material field and the Auto Generate Labor and Auto Generate Out-Process check boxes are selected on the Work Order Entry Additional tab. Selecting Yes at the Auto Issue Material field issues all component items for a work order automatically when the work order is released. Selecting Available Quantity Only at the Auto Issue Material field issues component items up to available quantities of those items automatically. When you record a release transaction in Work Order Transaction Entry for a work order using the Automatic issue method, the system generates material, labor, and outside processing transactions automatically for the work order after the Work Order Transaction Journal update is completed. After the release transaction is updated, you can reselect Work Order Transaction Entry to edit the automatically generated material,

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Work Order Entry

labor, and outside processing transactions prior to printing the Work Order Transaction Journal and updating to the permanent files.

2. The Backflush issue method automatically issues material, labor (if the Auto Generate Labor check box is selected on the Work Order Entry Additional tab), and outside processing (if the Auto Generate Out-Process check box is selected on the Work Order Entry Additional tab) transactions to the work order at the time the work order is completed.The Backflush issue method is normally used by companies that have a very short processing time or are set up as a production line. This method is also useful for companies that issue work orders for large quantities of finished goods but complete them over a period of time and pull components from floor stock. By backflushing material, labor, and outside processing transactions at the time of completion, the inventory valuation is more accurately reflected than if these transactions were issued automatically at the time of release. You can specify the Backflush issue method for a work order by selecting Backflush at the Issue Method field on the Work Order Entry Header tab. Use the Backflush issue method when material, labor, and outside processing transactions are to be automatically generated when entering a completion transaction. Material, labor, and outside processing transactions are issued if Yes or Available Quantity Only is selected at the Auto Issue Material field and the Auto Generate Labor and Auto Generate Out-Process check boxes are selected on the Work Order Entry Additional tab. When you record a work order completion transaction in Work Order Transaction Entry for a work order using the Backflush issue method, the system generates material, labor, and outside processing transactions for the work order automatically. The quantity of material issued depends on the quantity of the finished product completed. You can edit the automatically generated material issue transactions before printing the Work Order Transaction Journal and updating to the permanent files. 3. The Manual issue method allows you to accurately record material, labor, and outside processing transactions issued to a work order as they are used in the manufacturing process. The increase in the amount of manual data entry required for this method is offset by the accuracy of inventory valuation and quantity in stock. You can specify the Manual issue method for a work order by selecting Manual at the Issue Method field on the Work Order Entry Header tab. Use the Manual issue method to issue individual material, labor, and outside processing transactions to the work order. If this method is used, material, labor, and outside processing transactions are issued to a work order by manually recording these transactions using Work Order Transaction Entry. **NOTE Regardless of the issue method specified for a work order, you can manually enter material, labor, and outside processing transactions in Work Order Transaction Entry after the work order is released. Qty Planned The actual quantity of the finished product that the work order is planned to produce appears. This field is for display purposes only and cannot be changed. The quantity planned equals the quantity ordered divided by the yield percentage divided by 100. For

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Parkinson Accounting Systems

Work Order Entry

example, if the manufacturing process has a 90 percent yield percentage and the quantity ordered is 100, the quantity planned will be 111. All extended quantity calculations for components are based on this quantity. Routing No. Enter the routing number used to define the steps necessary for the manufacture of the finished product. Click the Lookup button to list all routing numbers. The routing number describes the steps, the order of the steps, and the work centers at which the steps must be performed to transform the raw components into the finished product. The default routing number originates from the Bill master file if you are entering a bill with a routing number defined; it originates from the Inventory master file if you are entering a bill with no routing number or if you are entering an inventory item that is not a bill. Status Select Firm Planned or Estimate as the status of this work order. If you are maintaining an existing work order, this field is available only if you are changing an estimate to a firm planned order. Copy From Enter the work order number from which you want to copy information. Click the Search button (Magnifying Glass) to the far right of the Copy From field to search for a particular work order by parent item description or user-defined field. If you are entering a work order template, enter the work order template number from which to copy information. Click the Search button (Flashlight) to list all work order template numbers. Description If you are entering a special item, type a description of the finished product. If you are entering an inventory item, the description from the Inventory master file appears and cannot be changed. If you are entering a bill, the bill description from the Bill master file appears and cannot be changed. Effective Date Type the date that the current bill will be effective. All engineering changes through that date are included. This option is available only if Bill of Materials is installed or if the Use Engineering Change Control check box is selected in the Bill of Materials Options window. Parent Whse Enter the warehouse code to which the finished parent item will be completed. Click the Lookup button to list all warehouse codes. This field is available only if the Require Multiple Warehouses check box is selected in Inventory Management Options, if you are not entering a special item, and if you are not entering a work order template.

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Parkinson Accounting Systems

Work Order Entry

NOTE You can complete work orders to a different warehouse than the parent warehouse when entering work order completion transactions in Work Order Transaction Entry. Component Whse Enter the warehouse code from which components will be issued. Click the Lookup button to list all warehouse codes. This field is available only if the Require Multiple Warehouses check box is selected in the Inventory Management Options window, if you are entering a special item, and if you are not entering a work order template. Print Pick Sheet Select the Print Pick Sheet check box to print the picking sheet for the current work order. If the Print Picking Sheets Upon W/O Release check box is selected in the Work Order Options window, the picking sheet will be selected for printing when the work order is released. If the check box is cleared, the work order must be manually selected using Picking Sheet Printing. Clear the check box if you do not want to print the picking sheet for this work order. This option is available only if the Print Picking Sheet check box is selected in the Work Order Options window. Print Labels Select the Print Labels check box to print work order labels for the finished product when the current work order is completed. Clear the check box if you do not want to print work order labels. This field is available only if you are not entering a special item. This field is not available if None is selected at the Print Work Order Labels field in the Work Order Options window. For W/O No. / For S/O No. If Work Order is selected at the Make For field, the For W/O No. field appears. Enter the parent work order number to which the current work order will be assigned as a subassembly. A work order cannot be assigned to itself, to a template, or to a closed work order. Click the Lookup button to list all work order numbers. When you have entered a work order number, the Work Order Line List window appears. Select the line identifying the step of the parent work order where the current work order will be assigned as a subassembly item. The step number will appear at the Step field. If Sales Order is selected at the Make For field, the S/O No. field appears. Enter the customer sales order number to which the finished product from the current work order will be assigned. Click the Lookup button to list all open sales order numbers. When you have entered a sales order number, the Sales Order Line List window appears. Select the line identifying the item detail line of the sales order to which the finished product from the work order will be assigned. The customer number and name on the sales order appear for reference at the Customer field. NOTE Substeps resulting from option bills and phantom bills from the Bill of Materials system are not shown. Work orders cannot be assigned to substeps.

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**Explanation of Steps and Substeps

Work Order Entry

The Work Order module uses the step number to identify a single operation that is performed during the manufacturing process. A step can be an assembly step, an inspection step, a painting step, etc. Each step is assigned a specific operation code performed at a specific work center and takes a predefined amount of time. The sequence of the step numbers controls the order in which these operations are performed. Step numbers can be defined for a routing using Routing Maintenance. Routing steps are merged to a work order automatically when the routing is assigned. Step numbers can also be defined directly for a work order on the Work Order Entry Operations tab. When transactions are entered against a work order, you can record unplanned operations or operations performed at a different work center; however, you must still define at least one planned step for a work order. If the Bill of Materials module is installed, you can assign a routing number to a bill and a step number to each component item of a bill. The step number indicates when a component item is used during the manufacturing process. You can also assign a step number to an option bill and an option interaction to indicate when material associated with an option or an option interaction is used.

A step number is a four-digit, zero-filled number. When entering a new step number in Routing Maintenance or Work Order Entry, you can increment the next number automatically by clicking the Next Number icon. The step number is incremented by the value specified at the Automatically Increment Steps By field in the Work Order Options window. If the step number represented by the next incremented value already exists, the difference between the current step number and the next value is divided by two.

If you are entering the first step number for a new routing, clicking the Next Number icon at the Step Number field on the Work Order Entry Operations tab inserts step number 0000 automatically. If the Bill of Materials module is installed, a work order can be created for a bill that contains option bills or phantom bills. Each option bill and phantom bill can be assigned a routing number using Bill of Materials Maintenance. The inclusion of these option or phantom bills in a product may require additional assembly steps with additional routings that must be merged into the standard routing of a product. Each component in a bill can indicate the step number where the component is required. If a component is a phantom bill with its own routing requiring additional assembly steps, or if the components are part of an option bill with its own routing requiring additional assembly steps, those steps are merged into the standard routing as a subrouting.

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Parkinson Accounting Systems

Work Order Entry

The subrouting is identified by a one-character prefix assigned by the system automatically. Each subrouting for a main step number is assigned a different substep prefix starting with "A." You can assign up to 26 phantom or option bills to each routing step, each with its own additional routing steps. The step numbers from the routing assigned to the phantom bill or option bill are assigned as substep numbers following the prefix character. NOTE All component items associated with a phantom bill or option bill are assigned to the step number of the main routing. No material can be assigned to a substep number.

Work Order Entry (Additional) Use the Additional tab to enter additional header information about the work order. If you know when you want to release the work order, but want to determine when the finished product will be completed, leave the Due Date field blank and type the scheduled release date at the Sched Release field. This causes the Forward scheduling method to be used to calculate the total amount of time needed to complete the finished product. If you are entering a work order template, the Status Comment, Due Date, Lead Time, Sched Release, and Order on Hold fields are not available. Status Comment

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Work Order Entry

Type a description of the work order status, indicating the current manufacturing stage of the finished product. This status can be printed using Dispatch Sheet Printing. This option is available only if you are not entering work order templates. Due Date Type the date on which the current work order is due. If you selected Work Order at the Make For field, the due date defaults to the scheduled start date of the step of the parent work order to which the current work order has been assigned. If a different due date is typed, the Backward scheduling method is used to calculate the scheduled release date for the current work order. You must type a due date or a scheduled release date, but you cannot type both dates. This option is available only if you are not entering a work order template. NOTE If you know when you want to release the work order but you want to determine when the finished product will be completed, leave this field blank and enter the scheduled release date at the Sched. Release field. This will cause the Forward scheduling method to be used to calculate the total amount of time needed to complete finished product. Lead Time The lead time necessary to produce the finished product appears. This information is for display purposes only and cannot be modified. Lead time is calculated during scheduling, after routing and material information has been entered. This field is available only if you are not entering a work order template. Sched Release Type the date on which the work order is scheduled to be released. You must enter a due date or a scheduled release date, but you cannot enter both dates. If you entered a due date at the Due Date field and you enter a scheduled release date, your entry at the Due Date field is deleted. This field is available only if you are not entering work order templates. Planner Enter the code identifying the planner responsible for the finished product. Click the Lookup button to list all planner codes. Planner codes are assigned to items using Buyer/Planner Code Maintenance in Inventory Management. Order on Hold Select the Order on Hold check box if the work order is on hold. Clear the check box if the work order is not on hold. A work order cannot be released in Work Order Transaction Entry until this check box is cleared. This field is available only if you are not entering a work order template. Explode Sub-Assem

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Work Order Entry

Select the Explode Sub-Assem check box if you want to explode subassemblies. Clear the check box if you do not want to explode subassemblies. This field is available only if the Material Requirements Planning module is not integrated with Work Order. Cost Completion Method Select a cost completion method to determine which costs are used to calculate the completion unit cost. Select one of the following methods: NOTE If Automatic or Backflush is selected at the Issue Method field on the Work Order Entry Header tab and the Auto Generate Labor and Auto Generate Out-Process check boxes are selected on the Work Order Entry Additional tab, labor and outside processing transactions are automatically created for work orders. Actual: The completion unit cost is based on the costs updated to the Work in Process accrual account. Work orders created with the Manual or Backflush issue method have a zero balance in the Work in Process accrual account after each completion entry is recorded. Whether the cost in the Work in Process accrual account represents the full-planned quantity or a partial quantity, the system assumes that all costs applicable to the completion entry are entered and that the cost in the Work in Process accrual account represents only that completion entry. For example, if the planned quantity for the work order is 100 items and you are processing a completion entry for the first 50 items, 100 percent of the cost in the Work in Process accrual account is used in the completion calculation for the 50 items. Work orders created when Automatic is selected at the Issue Method field on the Work Order Entry Header tab use the work order percent complete amount to allocate the costs updated to the Work in Process accrual account before the completion entry is recorded. This method leaves a zero balance in the Work in Process accrual account when the last completion entry for the work order is recorded. Planned: The completion unit cost is based on the standard costs that are calculated when the work order is created. The work order percent complete is used to calculate the cost for each completion. The Planned cost completion method may also create a positive or negative balance in the Work in Process accrual account if Yes or Available Quantity Only is selected at the Auto Issue Material field and the Auto Generate Labor and Auto Generate Out-Process check boxes are selected on the Work Order Entry Additional tab, and the automatically created material, labor, and outside processing transactions are edited. The automatically created transactions are based on the standard costs (calculated when the work order is created), and if they are edited, the variances between the standard costs and the edited costs are posted to the Work in Process accrual account. These variances are ignored by the completion calculation which always uses the standard costs. Lower of Plan/Actual: This method checks each step of the work order to determine if the standard or the actual cost is lower. The lower cost for each step determines which method is used to calculate the completion costs. If the standard cost is lower, the completion cost is calculated using the Planned Cost Completion method. If the actual cost is lower, the completion cost is calculated using the Actual Cost

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Work Order Entry

Completion method. This method leaves a zero balance in the Work in Process accrual account when the last completion entry for the work order is recorded. The selection at the Cost Completion Method field on the Work Order Options User-Defined tab determines the default setting at this field, but can be changed. Auto Issue Material Select Yes to generate material issue transactions for components when work orders using the Automatic issue method are released in Work Order Transaction Entry, or when completion transactions are entered for work orders using the Backflush method. Select No if you do not want to generate material issue transactions automatically. Select Available Quantity Only to generate material issue transactions for components up to the available quantity of each component item when the Automatic issue method is used for the work order. The default setting at this field is determined by the selection at the Auto Issue Material Transactions field on the Work Order Options Main tab, but can be changed. This field is available only if Automatic or Backflush is selected at the Issue Method field on the Work Order Entry Header tab. Auto Generate Labor Select this check box to automatically create labor transactions for work orders on their release if Automatic is selected at the Issue Method field and for work orders on their completion if Backflush is selected at the Issue Method field. This option is available for all cost completion methods. The default setting at this check box is determined by the selection at the Auto Generate Labor Transactions check box on the Work Order Options Main tab. This check box is available only if Automatic or Backflush is selected at the Issue Method field on the Work Order Entry Header tab. Auto Generate Out Process Select this check box to automatically create outside processing transactions for work orders on their release if Automatic is selected at the Issue Method field and for work orders on their completion if Backflush is selected at the Issue Method field. This option is available for all cost completion methods. The default setting at this check box is determined by the selection at the Auto Generate Outside Processing check box on the Work Order Options Main tab. This check box is available only if Automatic or Backflush is selected at the Issue Method field on the Work Order Entry Header tab.

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Work Order Entry

Work Order Entry (Operations)

Use the Operations tab to enter the operational step information necessary to manufacture the product for the work order. Each step identifies the operation to be performed and the work center where it will be performed. NOTE At least one step number must be entered on the Operations tab for each work order before the Materials or Scheduling tab can be accessed. After a work order is released using Work Order Transaction Entry, you cannot delete a step, but you can modify the standard run type, run time (hours per lot, hours per operation, or operations per hour), parent item type, or factor for the step in order to change its extended time to 0 (zero). New substeps cannot be created; they are created automatically when phantom bills or bills with options are merged from the Bill of Materials module. Step Number Enter the step number representing the step or substep to add or maintain. At least one step number must be entered for each work order. Click the Lookup button to list all step numbers. Click the Next Number icon to accept the next automatically incremented step number. If the step number represented by the next incremented value already exists, the difference between the current step number and the step represented by the multiple will be divided by two. If you are entering the first step number for a new routing, clicking the Next Number icon will insert step number 0000 automatically. If you issue component

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Work Order Entry

material to your work orders as soon as the work orders are released, and the component material is required for the first step of the routing, it is recommended that you create step number 0000 as a material issue step. Click the Save As button to save the current version of the routing to the Routing master file. To enter the substep number, type the step number followed by the alphabetical prefix and the subrouting number of the phantom or option bill (for example, 0020-A-0010). NOTE New substeps cannot be created here; they can only be created automatically when phantom bills or bills with options are merged from the Bill of Materials module. Step Description Type the step description. Click the Text button to display the Step Text Maintenance window. If an extended step description has been entered for the step, *Ext* appears to the right of the Text button.
Parent Item Type Select the parent item type required to indicate whether this operation produces more than one parent item (Parents/Operation) or whether more than one operation is required to produce this parent item (Operations/Parent). Select Operations if this operation, in conjunction with the other steps in this routing, will produce more than one parent item. This field is available only for existing line items if Hours per Operation or Operations per Hour is selected at the Standard Run Type field. Factor If Operation/Parent is selected at the Parent Item Type field, accept 1, or enter the number of times that this step must be performed to produce one parent item. If Parent/Operation is selected at the Parent Item Type field, accept 1, or enter the number of parent items that will be produced each time this step is performed. Work Center Enter the work center code representing the work center where this step will be performed. Click the Lookup button to list all work center codes. NOTE If Routing Maint or None is selected at the Addition of Work Centers and OP Codes field in the Work Order Options window, or if you do not have security clearance for Work Center Maintenance, you cannot establish new work centers. Oper Code Enter the operation code representing the work to be performed for this step at the work center selected. Click the Lookup button to list all operation codes for this work center. NOTE If Routing Maint or None is selected at the Addition of Work Centers and OP Codes field in the Work Order Options window, or if you do not have security clearance for Work Center Maintenance, you cannot establish operation codes.

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Parkinson Accounting Systems

Standard Run Type

Work Order Entry

Select Hours per Operation to calculate the standard run time in terms of hours per operation. Select Fixed Time per Lot to calculate the standard run time as a fixed amount of time per lot (for example, a setup operation). Select Operations per Hour to calculate the standard run time in terms of operations per hour. NOTE Generally, if it takes more than one hour to complete one operation, select Hours per Operation. If you complete more than one operation per hour, select Operations per Hour. If an operation always takes a fixed amount of time, regardless of the quantity being produced (for example, setup activities), select Fixed Time per Lot. Ignore Queue Time Select the Ignore Queue Time check box to ignore any queue time assigned to the current work center for this operation in Work Center Maintenance. Clear the check box to accept the queue time assigned to the current work center for this operation. Queue time is the amount of time that a job waits at a work center before the work is actually begun. Overlap % Enter the percentage of overlap used to determine when this step is scheduled to begin in relation with the previous step. For example, if you enter an overlap percentage of 0 for step 0020, step 0020 will not begin until the previous step has been completed. If you enter an overlap percentage of 25 for step 0020, step 0020 begins when the previous step is 75 percent completed. NOTE An overlap percentage entry for the first operation step has no effect because there is no preceding step. Hours/Operation If you selected Hours per Operation at the Standard Run Type field, type the number of hours required to complete the current operation. If you selected Hours per Lot at the Standard Run Type field, type the number of hours that the operation will be performed, regardless of the quantity being produced (the operation will be performed until the specified time has elapsed). If you selected Operations per Hour at the Standard Run Type field, type the number of operations that can be performed in one hour. Extended Time The total time required to perform this step or substep in hours appears, based on the standard run type, run time (such as hours per lot, hours per operation, or operations per hour), parent item type, and factor for the step and the quantity planned for the work order. This field is for display purposes only and cannot be changed. Sched Start The date that the step or substep is scheduled to begin appears. This field is for display purposes only and cannot be changed; this field does not apply if you are entering a work order template.

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Parkinson Accounting Systems

Work Order Entry

Work Order Entry (Materials)

Use the Materials tab to enter one or more material components required to manufacture the product. Each line item represents material to be issued to the current work order for the manufacture of the finished product. You can enter and maintain as many line items as you want. Line entries referencing completed steps cannot be modified. NOTE At least one step number must be entered on the Operations tab for each work order before the Materials or Scheduling tab can be accessed. Each line item represents material to be issued to the current work order for the manufacture of the finished product. You can enter and maintain as many line items as needed. The process of entering material items builds only one bill level at a time. If the finished product is made up of subassemblies, those subassemblies must be manufactured from other work orders or pulled from inventory. Component item information for the current work order is displayed for editing purposes if you are copying from a work order, from a work order template, or if you entered a bill number on the Work Order Entry Header tab. If a bill number is entered, a single-level bill explosion with phantom blow-through is performed after you click Accept. This means that the components for the bill appear as individual line items for the work order. After a work order is released using Work Order Transaction Entry, you cannot delete a component item, but you can modify the Step, Scrap %, Whse, Qty/Parent, or Extended Qty field for the step in order to change its extended quantity to 0 (zero).

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Parkinson Accounting Systems Item Number

Work Order Entry

Enter the item number identifying the inventory item, phantom bill, subassembly, or special item represented by the line item. Click the Lookup button to list all item numbers. Click the Search button to list all phantom bills. If the same item number is required from two warehouses, you must enter two line items; one for each warehouse. Description (1 and 2) Type a description of this special item. If you are entering an inventory item, the item description from the Inventory master file is displayed and cannot be modified. If you are entering a phantom bill, the bill description from the Bill master file is displayed and cannot be changed.
Revision Enter the revision code representing the bill configuration for the displayed item. Click the Lookup button to list all revision codes. The revision of the bill can be printed using Picking Sheet Printing. This field is available only if you entered a bill at the Item Number field, if the Bill of Materials module is installed, or if the Use Bill Revisions Codes check box is selected in the Bill of Materials Options window. U/M Enter the unit of measure for this component item. If you are entering a special item, you can enter any four-character unit of measure. If you are entering a special item, this field is for display purposes only and cannot be changed. Click the Lookup button to list all units of measure. Cost Enter the cost of this special item. If you are entering an inventory item, the standard or average Cost for the item, depending on the costing method, appears and cannot be modified. Scrap % Type the scrap percentage (a positive number from 0 to 99.999) for this component item. The scrap percentage is used to increase the calculated gross requirements of specific component items to compensate for anticipated loss during the manufacturing process. Step Enter the step at which the current component item will be required. Click the Lookup button to list all step numbers for this work order. Substeps cannot be entered. If the same item number is required for two steps, you must enter two line items, one for each step. If the step number entered is complete, the **STEP COMPLETE** message appears. NOTE If a phantom or option bill is used as a component on a bill and that phantom or

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Parkinson Accounting Systems

Work Order Entry

option bill has a routing of its own, the material required for the phantom or option bill will be issued at the main step of the subrouting. Qty/Parent Type the quantity of this component item required to complete one finished parent item. This quantity is based on the unit of measure for the item entered at the U/M field, and will be multiplied by the quantity planned and factored by the scrap percentage to determine the total quantity of this component required to complete this work order. To define this component item as a by-product of the finished product, enter a negative quantity. This indicates that during the manufacture of the parent item, you will also be producing a by-product component item. NOTE The placement of the decimal point for quantity and cost entries for inventory items is based on the entry format established in Inventory Management Options. Cost Type The cost type for the inventory item appears. This information is for display purposes only and cannot be changed. This field is unavailable if you are entering a special item or phantom bill. Whse Enter the warehouse code from which this component item will be issued during the Automatic Issue process. Click the Lookup button to list all warehouse codes. This field is available only if the Require Multiple Warehouses check box is selected in the Inventory Management Options window, and if you are not entering a special item or a work order template. NOTE If the same item number is required from two warehouses, you must enter two item lines, one for each warehouse. Extended Qty Type the total quantity of this component item required at this step for this work order. The extended quantity for this component is calculated by multiplying the quantity per parent by the quantity planned and factoring the scrap percentage of the component item. If the component item entered is a phantom bill, the phantom bill will be exploded into its component items. All of the components of the phantom bill will be assigned to the same step number that was entered for the phantom bill. Procurement Type The procurement type from the Inventory master file for the item appears. This field is for display purposes only and cannot be changed. The procurement type indicates how this item was obtained. This field does not appear if you are entering a special item or phantom bill. **ENTERING MATERIAL INFORMATION

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Parkinson Accounting Systems

Work Order Entry

If the Bill of Materials module is installed, you can predefine bills for your finished products that can then be used to merge material information to a work order automatically. If your products are repetitive and consist of many component items, using bills greatly reduces the amount of data entry required. If the Bill of Materials module is not installed, you must manually enter each individual component item required for the work order. If your products are not made on a repeating basis (for example, each product produced is custom made) or if only a few component items are required, it may be practical to enter your material manually without using the Bill of Materials module. You can also use the Template feature in Work Order Entry to create standard work orders to be used for repeat items. NOTE If you use the Copy From feature on the Work Order Entry Header tab to copy information from an existing work order, the material lines are copied from that work order. If the item number copied is changed to another item number that is a bill, or if the copied revision, option code, or effective date is changed, the material lines are pulled from the Bill master file. For each component item, you must specify the quantity per parent required to complete one of the finished products. The extended quantity (for example, the actual quantity of the component required) is calculated by multiplying the quantity per parent by the quantity planned, and factoring the scrap percentage of the component item. As each component item is recorded for a work order, the quantity of the item required is committed from inventory. The quantity required for work order in the Inventory master file is updated by the extended quantity calculated for the item. The planned material cost for the component item is calculated based on the valuation method specified for the item. If standard cost is used by the item, the planned cost is the extended quantity multiplied by the standard cost.

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Parkinson Accounting Systems

Work Order Entry

Work Order Entry (Scheduling)

Scheduling determines when each step of a work order should be started and how long each step takes to complete. The time requirements for each work order are recorded by work center to provide the number of hours committed for each day. The "infinite" loading technique is used to allow each work order to be scheduled independently. When a work order is scheduled, a planned start date is assigned to each step of the work order. You are able to monitor the progress of a work order by checking the planned start date against actual dates when operations are performed. Use the Scheduling tab to calculate the work order scheduled due date, work order scheduled release date, scheduled start date, and scheduled completion date of each step. Scheduling information is required to commit time in work centers and to update scheduled times in the Work Order files. Scheduling determines when each step should be started and how long each step will take so that dates for each step can be scheduled at each work center. Before you can exit a new work order, it must be scheduled. By scheduling the planned start date and the planned processing time for each step, you can easily track the progress of the work order. Forward scheduling can be used to calculate the due date based on a specific release date and the lead times required. Backward scheduling can be used to calculate the necessary release date based on a specified due date. You can reschedule a work order even after it is released. NOTE You cannot enter scheduling information for work order templates. Click Schedule to calculate either the calculated due date or the calculated release date.

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Parkinson Accounting Systems

Work Order Entry

Current Release Date The scheduled release date entered on the Work Order Entry Header tab is displayed for reference. This information can only be viewed. The current release date is not updated until the schedule is accepted. This field appears only if a scheduled release date was entered on the Header tab. Current Due Date The work order due date entered on the Work Order Entry Header tab is displayed for reference. This field can only be viewed. The current due date is not updated until the schedule is accepted. This field is appears only if a date was entered at the Due Date field on the Work Order Entry Header tab. Current Lead Time When scheduling has been completed, the number of days of lead time required by the current work order appears. The lead time is the number of days between the scheduled release date and the current due date. This field can only be viewed. Scheduling Method Select Backward to use Backward scheduling method, which calculates the scheduled release date by scheduling the work order steps backward in time from the due date entered on the Work Order Entry Header tab. Select Forward to use the Forward scheduling method, which calculates the due date by scheduling the work order steps forward in time from the scheduled release date entered on the Header tab. If the work order has been released, select Forward to calculate the due date. Due/Release Date Type the date on which the current work order is due, or the date that the work order will be released. If Forward is selected at the Scheduling Method field, the Release Date field appears. If Backward is selected at the Scheduling Method field, the Due Date field appears. NOTE If you are scheduling a released work order and a step number was modified, the scheduled start date of that step displays as the default release date. First Step Affected Enter the first step or substep to be affected by rescheduling. The step description appears. Click the Lookup button to list all steps on the current work order. If you are entering a new work order, this field can only be viewed.

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Parkinson Accounting Systems

MAS 90 & MAS 200 TRAINING CLASS Work Order

Work Order Transaction Entry

1.

WORK ORDER TRANSACTION ENTRY

Work Order Transaction Entry (Header)

On the Work Order Main menu, click Work Order Transaction Entry to enter all transactions against work orders. The types of transactions that can be entered include the following: Enter the transaction type that defines this transaction. Release: Used to change the status of a work order from firm planned to released

Material Issue: Used to record the issue of component inventory items from the warehouse to the shop for individual work orders Labor: Used to record the labor hours expended on a work order

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Parkinson Accounting Systems

Work Order Transaction Entry

Misc. Labor Charge: Used to post labor charges not related to specific employees to work orders Misc. Material Charge: Used to charge noninventory material costs to a work order Outside Processing Charge: Used to post charges for work performed by outside vendors Completions: Used for recording the completion of all or part of the finished product being produced by a work order Close Work Order: Used to close a work order

Your selection at this field determines the options available on the Lines tab. Work Order Transaction Entry allows you to report work activities at alternate work centers, and record unplanned activities on a work order. Reporting activity against a work order relieves commitments of material and work center capacity reservations. Each work order is assigned a transaction number and one of eight transaction types. NOTE If you are performing Work Order Transaction Entry by batch, all new transactions entered are attached to the batch number that appears in the upper-right corner of the window.

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Parkinson Accounting Systems

Work Order Transaction Entry

Work Order Transaction Entry (Lines)

The following fields are available if Release is selected at the Type field. Work Order No. Line Detail The following fields are available if Material Issue is selected at the Type field. Work Order No. Substitute Material - Select the Substitute Materials check box if the material being issued to the work order is a substitute item for the component originally planned for the work order. Clear the check box if the material being entered is not a substitute item. Orig Whse - Enter the warehouse code that represents the warehouse from which the original item was planned to be issued. This field is available only if the Require Multiple Warehouses check box is selected in the Inventory Management Options window or if the item entered at the Orig. Item field is committed in more than one warehouse against this work order or step. Item Number Whse -Enter the warehouse code representing the issuing warehouse. Click the Lookup button to list all warehouse codes. This field is available only if the Require Multiple Warehouses check box is selected in the Inventory Management Options window. Orig U/M Orig Item Number U/M

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Parkinson Accounting Systems

Work Order Transaction Entry

Orig Qty Step No. Issue Qty. - Enter the quantity of the item to be issued. If you enter a positive value, the quantity entered is issued from inventory to the work order. If you enter a negative value, the quantity of excess material entered is returned from the work order back into inventory. This feature allows you to return by-products to inventory that are created as a result of the manufacturing process. NOTE If you enter a positive issue quantity, the item quantity will be issued from the warehouse specified. If you enter a negative value, the item quantity will be issued to the warehouse specified. If you enter a negative issue quantity, you can issue the item to a new lot or serial number if you are returning a by-product to inventory. Line Detail The following fields are available if Labor is selected at the Type field. Work Order No. Work Center Qty Completed Start Date Stop Date Line Detail Start Time Stop Time Oper. Code Step Number Step Completed The following fields are available if Misc. Labor Charge, Misc. Material Charge, or Outside Processing Charge is selected at the Type field. Work Order No. Date Vendor No. (Outside) - Enter the vendor code representing the outside vendor who provided the products or services for this work order. Click the Lookup button to list all vendor numbers. This field is available only if Outside Processing Charge is selected at the Type field, and if the Accounts Payable module is installed. Description Oper. Code Step Number Cost - Enter the cost charged to the work order. The cost can be entered as a positive or negative number. A positive number posts against the work order. A negative number removes the cost from the work order. Work Center Line Detail

The following fields are available if Completion is selected at the Type field. Work Order No.

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Parkinson Accounting Systems

Work Order Transaction Entry

U/M Unit/Total Cost - Enter the unit cost of the units being scrapped. If you do not know the cost of the units being scrapped, accept 0 (zero). The unit cost will be calculated automatically based on the percentage of units being completed to scrap compared to the total remaining quantity. If you entered 0 (zero) at the Quantity field, you must enter a total cost. Because a quantity was not entered, the cost represents a "lot" cost, rather than a unit cost. This relieves the cost of the scrap from work in process without changing the quantity expected from the work order. Complete to - Select the method to be used to complete items for the current work order. The Sales Order method is available only if the Sales Order check box is selected at the Integrate Work Order with field in the Work Order Options window. Warehouse - Enter a warehouse code representing the warehouse that will receive the finished items. Click the Lookup button to list all warehouse codes. This field is available only if the Require Multiple Warehouses check box is selected in the Inventory Management Options window. Sales Order / Work Order - If you selected Sales Order at the Complete to field, enter the sales order number to which the work order will be completed. Click the Lookup button to list all open sales orders. When you have entered the sales order number, the customer name displays for reference at the Customer field. If you selected Work Order at the Complete to field, enter the released work order number to which the work order will be completed. Click the Lookup button to list all released work order numbers. When you have entered a work order number, a list of the step numbers assigned to the work order appears. After you select a step number, the number will display at the Step field for reference. Complete Item No. - Enter the inventory or special item number representing the item number being completed. Special items are entered by typing an asterisk (*) followed by alphanumeric characters. First Step - Enter the step number representing the first step completed for this work order for the parts being scrapped. Click the Lookup button to list all step numbers for this work order. Line Detail Quantity Last Step - Enter the step number representing the last step completed for this work order for the parts being scrapped. Click the Lookup button to list all step numbers for this work order. Step 9999 should be accepted if the parts were routed all the way through the work order before being scrapped. Parent Qty - Enter the quantity of planned parent items that this completion transaction represents. Enter 0 (zero) to indicate that this item is a by-product item. The parent quantity indicates the number of items that are represented by the current quantity of items being completed (entered at the Quantity field). This field only appears if the entry at the Complete Item No. field is changed. The following fields are available if Close Work Order is selected at the Type field. Work Order No. Line Detail

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Parkinson Accounting Systems

MAS 90 & MAS 200 TRAINING CLASS Work Order Scheduling

Work Order Scheduling

Scheduling determines when each step of a work order should be started and how long each step takes to complete. The time requirements for each work order are recorded by work center to provide the number of hours committed for each day. The "infinite" loading technique is used to allow each work order to be scheduled independently. When a work order is scheduled, a planned start date is assigned to each step of the work order. You are able to monitor the progress of a work order by checking the planned start date against actual dates when operations are performed. The scheduling process is normally performed as the last function in Work Order Entry for a new work order. You can also call up an existing work order, whether it has been released or not, and reschedule it at any time. You can reschedule from the first step or from a specified step. There are two types of scheduling: forward and backward. Forward scheduling starts with a release date and calculates the time forward for each step, ending with a planned due date for the work order. Backward scheduling starts at the due date and calculates the time backward for each step, ending with a release date for the work order. The scheduling process commits the time required to complete a work order step based on the production capacity of the work center, the available hours at the work center, the queue time for the work center, the minimum scheduling time period for the work center, the hours required to complete an operation for the step, and the overlap percentage defined for the step. Work Order Options Max Number of Months to Schedule Type the maximum number of months that work order scheduling can be performed without interruption. If work order scheduling exceeds the maximum number of months, a warning message appears; however, scheduling can still proceed. NOTE: If no maximum number is entered, or if a large number of months are entered, scheduling can take a considerable amount of time to perform.

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Parkinson Accounting Systems Work Center Maintenance

Work Order Scheduling

Queue Time Queue time is the number of hours that a work order sits in front of a work center before it starts. It also includes the "move" time required to physically move partially completed items from the previous operation to the next work center. Queue time is expressed in production hours. Increasing the queue time can reduce the number of hours committed at overloaded work centers. Queue time is used only for scheduling purposes and does not affect the work center capacity. In most manufacturing companies, the actual "lead time" through the shop is composed of over 90 percent queue time. By varying the amount of queue time you plan into your work orders, you control the planned lead time of a job. Queue time is typed at the Queue Time field in the Work Center Maintenance window. Queue time does not necessarily apply to all operations performed at a work center. Typically, a "setup" operation has the queue time applied to it, and is then followed immediately by one or more operations that can be performed without any additional wait. You can control whether queue time is used for an operation using the Ignore Queue Time check box in Operation Code Maintenance or Routing Maintenance.

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Parkinson Accounting Systems

Work Order Scheduling

NOTE The queue time affects the number of operational hours available at a work center for the purpose of scheduling a work order, but is not included in the total scheduled hours for the purpose of determining work center capacity. Efficiency Percentage Type the percentage of efficiency for this work center, taking into account any necessary adjustments for changes in personnel or equipment. This percentage is used to calculate the amount of time to schedule for an operation. This percentage is used to reflect maintenance problems and other factors that can reduce the actual production capacity. If a work center is working at full capacity, this field should be set to 100 percent. For scheduling purposes, the number of hours available for production at a work center is calculated as follows:
(Standard Work Center Hours for Day x Work Center Efficiency Percent) / 100

This percentage should be maintained regularly to reflect the current status of the work center. Typically, the work center efficiency percentage should be at 100 percent to reflect the normal productivity of the work center. If a work center normally has two machines in operation and one of the machines is down for maintenance, the efficiency for the work center is reduced to 50 percent. Min Scheduling Time Period Enter the minimum number of minutes expected for the completion of any operation at this work center. This time period is used in calculating schedules in Work Order Entry. This prevents scheduling of unrealistically short time periods when small quantities of components are processed. Standard Hours Available in Work Center Type the number of hours that this work center is available for operation on each day of the week. If no hours are entered for any day, a default of 8 hours for each day is used for Monday through Friday. NOTE The number of hours entered must be consistent with the method you employ for defining operation codes for this work center. If you define the production rate for this work center on the basis of each machine in Operation Code Maintenance, you would enter 32 for 4 machines that are available 8 hours per day, and enter 4 at the Number of Workers/ Machines field. If, however, you define the production rate based on all 4

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Parkinson Accounting Systems

Work Order Scheduling

machines as a single unit, you would enter 8, and enter 1 at the Number of Workers/Machines field. Production rates are defined by hours per operation, hours per lot, or operations per hour in Operation Code Maintenance. Shop Calendar Maintenance Use Shop Calendar Maintenance to maintain a shop calendar for an entire shop (default) and/or for individual work centers. Shop calendar entries are used for scheduling in Work Order Entry to indicate when a shop as a whole, or individual work centers in a shop, will be open or closed. All shop calendar entries are automatically sorted by date.

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Parkinson Accounting Systems

Work Order Glossary

Work Order Glossary

Audit Report A report used to verify the accuracy of information entered. Audit reports are usually required before a file udpate is permitted. Backflush (Work Order) A component issue method entered during Work Order Entry in which component items of a parent item are not relieved from inventory until a completion transaction is entered for the parent item. Batch A collection of related data items entered at one time. Typically, a register is printed listing all entries of a batch prior to updating the permanent files. Close Transaction A transaction type used for designating a work order as closed. After a work order is closed, costs against the work order are no longer active. Closed work orders can be viewed using Work Order Inquiry until they are purged using Work Order Purge. Completion Transaction A transaction type used for recording the completion of all or part of the finished product being produced by a work order. Firm Planned Work Order A work order which has not been released to the shop. Firm planned work orders cannot have transactions posted against them. Label Form Code An alphanumeric code identifying a specific format contained in the Forms file for printing labels. Each format must be assigned its own label form code. Labor Transaction A transaction type used for recording the hours expended on a work order. Labor transactions can be charged against each setp on a work order for individual production employees or for a labor crew.

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Parkinson Accounting Systems Material Issue Transaction

Work Order Glossary

A transaction type used for recording the issue of component inventory items from the warehouse to the shop for individual work orders. This type of transaction can also be used to manually issue Inventory Items or replacement parts when a component is scrapped. Miscellaneous Labor Charge Transaction A transaction type used for posting labor charges against a work order without recording the specific employees who performed the work or the number of finished products produced. Miscellaneous Material Charge Transcation A transaction type used for entering charges for shop supplies and special items against a work order. Outside Process Charge Transaction A transaction type used for entering charges against a work order for products and services provided by an outside vendor. Release Transaction A transaction type used fo rchanging the status of work orders from firm planned to released. When a work order is released to the shop, it is considered a production order that authorizes the shop to produce products.

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Parkinson Accounting Systems ROUTINGS

Work Order Glossary

Each routing, also known as a process outline, is composed of one or more operations and can include a definition of equipment setup, required tooling, and operations performed by outside vendors. Each routing setp identifies the operation and the work center where the operation is performed. Routing numbers can be assigned to inventory items using Inventory Maintenance in Inventory Management, or to bills using Bill of Materials Maintenance if the Bill of Materials module is integrated with Work Order. In Work Order History, a routing number assigend to a bill supersedes the routing number assigend to an invenotry item that is also a bill. NOTE: The routing defines only the steps required to manufacture a product. I tdoes not define the material involved in the manufacturing process. Material can be defined for any setup using Work Order Entry or Bill of Materials Maintenance. If W/O Entry or None is selected at the Addition of Work Centers and Op Codes filed in the Work Order Options window, or if you do nto have a system security clearance for Work Center Maintenance or Operation Code Maintenance, you cannot establish new work centers or operation codes.

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Parkinson Accounting Systems WORK CENTERS

Work Order Glossary

What you define as a work center is dependent on operationl convenience and the nature of your business. A work center usually represents a specific shop or factory location. A work center can consist of a single machine with an operator who performs a specific task, such as sanding, drilling or pressing; it can also represent a specialized shop, such as a paint shop consisting of a facility and a crew of employees. Each work center may be capable of performing multiple types of tasks. Each type of task is identified by an operation code. The combination of the work center and the operation code identifies a unique task that can be performed during a manufacturing process. A work center is identified by a five-character alphanumeric code. Work cneters can be created and maintained using Work Center Maintenance. Work centers can also be created on the fly using Operation Code Maintenance, Work Order Entry, and Routing Maintenance if Both is selected at the Addition of Work Center and OP Codes field in the Work Order Options window. Example The following table illustrates some possible work center definitions for a company that manufactures computers. Work Center ACC CAB DRV FIN MBD PWR TST Description Accessories Cabinet and Chassis Center Disk Drive Center Final Packaging Motherboard Work Center Power Supply Center Testing/System Burn-In

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