WIP to COS Calculation - WIP Report

Yahoo Archive
1
Charlie,



Thanks for the information.



Scott



From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of
CharlieSmith
Sent: Wednesday, December 14, 2011 7:34 AM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] WIP to COS Calculation - WIP Report





The application determines the Relieved Cost value during the WIP/COS
calculation. It does this by calculating a cost for each Relieved
Quantity value recorded on each subassembly and final assembly on the
job method.

This value is used to determine the Remaining Cost that exists on each
job.

The Relieved Cost functionality uses this logic to calculate its
results.

* Material Quantity Relieved = Operation Qty Relieved x Material Qty Per

* Relieved Cost = Actual Unit Cost to Date x Material Quantity Relieved

* Remaining Cost = Actual Cost to Date- Relieved Cost

The following example(s) illustrate how you use the Relieved Cost
functionality.

Work on Job 4587 is progressing on schedule. Your manufacturing center
has completed work on the first assembly, and a quantity of aluminum was
pulled from inventory to create the final assembly quantity. There were
five operations within this assembly that each required 20 units of
aluminum to generate one quantity of the assembled part. The application
determines that the Relieved Quantity value so far on the operation is
100. Each unit of aluminum costs $18.45. The application determines that
the Relieved Cost value on this job is $1,845. The total job is budgeted
for $10,000, so the Remaining Cost on this job is $8,155.

Each Material and Operation figure how much has been done and what the
costs are. If 5 of 20 are shipped from the job and there are 5
operations:

Materials are 100 % issued - 25% of the cost goes to the shipment 75%
remains in WIP

Operations:

10 = 100% (20) complete - 25% to COS

20 = 50% (10) complete - 50% to COS

30 = 25% (5) complete - 100% to COS

40 = 25% (5) complete - 100% to COS

That's it in a nutshell

Charlie Smith

2W Technologies LLC, Sr. Business Consultant

Phone: (312) 533-4033 x8046

(860) 620-9553

Fax: (847) 374-3620

2W Tech on Facebook
<http://www.facebook.com/pages/Chicago-IL/2W-Technologies-LLC/1391945694
32409> www.2WTech.com <http://www.2wtech.com/>

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ] On
Behalf
Of litzer1
Sent: Tuesday, December 13, 2011 4:36 PM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
Subject: [Vantage] WIP to COS Calculation - WIP Report

Does anyone know how COS from WIP is calculated when shipping a partial
shipment from a Job. We have seen some issues lately where WIP is not
being moved into COS and would like to know how COS is calculated to
determine if it is something we are doing.

Example, We have a Job for 15 Units, the Job shipped 5 units while
production is still occurring. In WIP it showed a total cost of
$12,200.42 before shipping, after shipping $9,164.87 was movd to COS and
the remaining left in WIP.

Scott

[Non-text portions of this message have been removed]





[Non-text portions of this message have been removed]
2
Does anyone know how COS from WIP is calculated when shipping a partial shipment from a Job. We have seen some issues lately where WIP is not being moved into COS and would like to know how COS is calculated to determine if it is something we are doing.

Example, We have a Job for 15 Units, the Job shipped 5 units while production is still occurring. In WIP it showed a total cost of $12,200.42 before shipping, after shipping $9,164.87 was movd to COS and the remaining left in WIP.

Scott
3
The application determines the Relieved Cost value during the WIP/COS
calculation. It does this by calculating a cost for each Relieved
Quantity value recorded on each subassembly and final assembly on the
job method.

This value is used to determine the Remaining Cost that exists on each
job.



The Relieved Cost functionality uses this logic to calculate its
results.

* Material Quantity Relieved = Operation Qty Relieved x Material Qty Per

* Relieved Cost = Actual Unit Cost to Date x Material Quantity Relieved

* Remaining Cost = Actual Cost to Date- Relieved Cost



The following example(s) illustrate how you use the Relieved Cost
functionality.

Work on Job 4587 is progressing on schedule. Your manufacturing center
has completed work on the first assembly, and a quantity of aluminum was
pulled from inventory to create the final assembly quantity. There were
five operations within this assembly that each required 20 units of
aluminum to generate one quantity of the assembled part. The application
determines that the Relieved Quantity value so far on the operation is
100. Each unit of aluminum costs $18.45. The application determines that
the Relieved Cost value on this job is $1,845. The total job is budgeted
for $10,000, so the Remaining Cost on this job is $8,155.



Each Material and Operation figure how much has been done and what the
costs are. If 5 of 20 are shipped from the job and there are 5
operations:

Materials are 100 % issued - 25% of the cost goes to the shipment 75%
remains in WIP

Operations:

10 = 100% (20) complete - 25% to COS

20 = 50% (10) complete - 50% to COS

30 = 25% (5) complete - 100% to COS

40 = 25% (5) complete - 100% to COS



That's it in a nutshell



Charlie Smith

2W Technologies LLC, Sr. Business Consultant

Phone: (312) 533-4033 x8046

(860) 620-9553

Fax: (847) 374-3620

2W Tech on Facebook
<http://www.facebook.com/pages/Chicago-IL/2W-Technologies-LLC/1391945694
32409> www.2WTech.com <http://www.2wtech.com/>



From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of litzer1
Sent: Tuesday, December 13, 2011 4:36 PM
To: vantage@yahoogroups.com
Subject: [Vantage] WIP to COS Calculation - WIP Report





Does anyone know how COS from WIP is calculated when shipping a partial
shipment from a Job. We have seen some issues lately where WIP is not
being moved into COS and would like to know how COS is calculated to
determine if it is something we are doing.

Example, We have a Job for 15 Units, the Job shipped 5 units while
production is still occurring. In WIP it showed a total cost of
$12,200.42 before shipping, after shipping $9,164.87 was movd to COS and
the remaining left in WIP.

Scott





[Non-text portions of this message have been removed]