VA Pending and Work in Process

During the fabrication of a VA product, the costs associated with fabrication are tracked and General Ledger (GL) is updated as a section is completed. Any inventory value associated with the section is moved from pending to Work In Process (WIP). Pending and WIP values are stored (and displayed in VA Order Entry) for each VA order in five system totals: Inventory, External Charges, Internal Charges, Addons, and Inventory In.

Inventory - The value of products taken out of the warehouse and used to fabricate the finished VA product.
External Charges - The cost of the work performed by external vendors to fabricate a VA product.
Internal Charges - The value of the work performed by your internal fabrication department to make a finished VA product.
Addons - Any addon charges such as freight or handling that are added to the cost of the fabrication process. These are applied if you select to update GL Cost with addons.
Inventory In - The value of surplus inventory that is not used during the fabrication process and is returned to stock in your warehouse.

When pending totals are moved to WIP, a GL journal is opened, the appropriate Inventory Control account is credited and the IC Work In Process asset account is debited. These GL updates occur for VA sections as follows:

Inventory Components (IN) - When inventory is pulled from your warehouse and shipped to your internal processing area or an external vendor, the value of the inventory shipped and any addons are moved from the Inventory pending total to WIP total on the VA order. If the quantity available to ship is less than the quantity ordered on an IN line, the available quantity is shipped in VA Entry Shipping and a new IN section is created for the remaining amount.
Note: You can use this process to intentionally stagger the delivery of components needed in the fabrication process.
External Process (EX) - When an external vendor is finished with a specific portion of the fabrication process, the value of the work done is applied to the VA order through receipt of the purchase order that is tied to the VA section in Purchase Receipt of Inventory Entry. The cost of the labor and any addons on the PO are moved from the External Charge pending total to the WIP total.
Internal Processing (IT) - When your internal processing department completes their portion of the fabrication process, the value of their labor charges and any addons are recorded in VA Order Entry or VA Internal Labor Time Entry.

The charges are then moved from the Internal Charges Pending total to the Work in Process total. If the internal processing is expected to last a long time, you can record the labor completed thus far and manually move it into WIP, leaving the remaining labor charges in Pending. This is done by selecting the completed labor entries in VA Order Entry, selecting Mark as WIP to mark the entries, and then Move to WIP.

The Value Add Section Move to WIP window appears. Add specifics about the move, then click OK. This action creates a similar, but new section above the existing section. The lines that were marked for WIP are moved to the new section, and the VA order is re-sequenced. The new section line designated as WIP is considered complete and the General Ledger is updated. The Header view also displays the updated charges.

Inventory In (II) - When the fabrication process is complete, you can return any surplus components to inventory by receiving a purchase order that is tied to a VA order from your internal fabrication department or an external vendor. The Product Setup Warehouse Product cost of the products that are returned, plus any addons, is used to update the Inventory In total and the GL Inventory account
Inspection (IS) - When your inspection department reviews the work of a fabrication process, the value of the time and materials used is applied to the VA order when the IS section is received. This is done by entering a new labor product in VA Transaction Entry or recording time worked in VA Internal Labor Time Entry. The value of the labor on the IS section is moved from the Internal Charges total to the WIP total. As with the IT section, if the inspection process is expected to encompass a long period of time, you can record the work that has been completed so far, assign the Mark as WIP status, and then select Move to WIP in VA Transaction Entry.

Note: Values in Pending cannot be moved to Work in Process if there are open sections preceeding the one being reviewed and updated.

Note: Use the VA Work In Process Trial Balance Report to produce a list of work in process for all work order sections and compare it to the General Ledger.