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Work Orders from Release to Close

A work order makes a quantity of an item from its bill of materials or recipe. It is released (reserving components), components are issued to it, production is reported (receiving the finished goods), and it is closed (posting the variances). Every step is a stock movement, so the order's cost and the stock ledger always agree.

Where to find it

Architect Panel → ERP - Operations:

  • Production — the console: the Work orders tab, plus planned orders, demand and work centres; its badge counts released or in-progress work orders past their due date

Admin Panel → Inventory & Production:

  • Production — the same console for production staff

Who can use it

ERP: Inventory or ERP: Reporting opens the console; creating and progressing work orders needs ERP: Inventory (or ERP: Administration) and write access to the company. Closing needs post access as well, because it posts to the ledger.

Creating a work order

  1. Open Production, go to Work orders and click New work order (or convert a planned order from MRP).
  2. Enter the Item to make (only items with an active bill of materials or recipe), Quantity, Due and Start (blank is the due date).
  3. Choose Issue components from and Receive finished goods into; blank uses the components' and the item's default locations.
  4. For a lot-tracked item, enter the Finished goods lot (it defaults to the work order number).
  5. Tick Backflush to issue components automatically when production is reported.
  6. Click Create work order.

The order takes a snapshot of the structure effective on the start date (scrap included), its routing, and its standard cost. Later changes to the structure do not change it.

Running it

  1. Release: reserves what each component still needs at the issue location. Shortages do not stop the release; the message lists them.
  2. Issue: in the Components card, enter quantities under Issue now and click Issue the quantities entered, or click Issue all outstanding. Lot-tracked components are picked first-expiry-first-out. The order moves to In progress.
  3. Report production: enter Good and Scrapped, the Finished goods lot, tick Backflush components if wanted, and click Report. For serial-tracked items, enter one serial per good unit or generate them from the work order number. When completed plus scrapped reaches the quantity, the order is Completed.
  4. Close: confirm with Yes, close. Unused reservations are released and the variances are posted. A closed work order cannot be reopened. Force close closes an in-progress order that will make no more.

If the item has a routing, report each operation instead: Report operation takes Good, Scrapped, Setup minutes, Run minutes and Operation done, and reporting the last operation receives the finished goods. An operation cannot pass on more than the one before it.

The order's statuses are Planned, Released, In progress, Completed, Closed and Cancelled.

Dates and corrections

Each step takes a Date: blank is now. A date in the future, more than a year ago, before the release, before stock accounting went live, or in a closed accounting period is refused. Correct release date can only move the release earlier. To undo an issue, use Return on the component; to undo a report, use Reverse in the order's Stock movements card. Backflushed components stay issued until returned separately. Cancel is allowed only while the order holds nothing: return components and reverse production first.

What goes wrong

  • "'X' has no bill of material or recipe effective on D - a work order needs one."
  • "'X' is a phantom sub-assembly: it is never made on its own work order."
  • "… release it before issuing components."
  • "WO has a routing: report its operations …": report operations, not production.
  • "Closing posts the work order's variance to the general ledger, and you do not have post access to this company."
  • "Components are still issued to WO - return them to stock … before cancelling, or close it instead."

Worked example

A planner converts a planned order into WO for 50 pumps due Friday. On Monday they release it; two components are short and the message says so. Stores issue everything available on Tuesday and the rest on Wednesday when it arrives. The line reports operation 10 for 50 good, then operation 20 for 49 good and 1 scrapped, which receives 49 pumps into finished goods. On Friday the order is Completed and they close it; the message gives the material and conversion variances and the journal.

Recommendations

  • Release only what you intend to start, so reservations mean something.
  • Book on the day; back-dating is limited and must stay in open periods.
  • Use backflush for cheap, high-volume components and manual issue for the rest.
  • Close completed orders promptly so variances land in the right month.