Closing Works Orders
Closing is the final stage in a works order’s life cycle. It should only be done when all costs are entered and posted, and there will be no more completions.
Closing an order is also a financial function, to confirm the cost of the built item and move the accumulated costs from Work In Progress into Stock.
A works order can only be closed if it is eligible for closure.
Reasons a Works Orders cannot be Closed
- The order status is not set to Completed.
- Components issued to the order have unconfirmed costs. This includes works orders for sub-assembly components which have not been closed.
- There are unposted Timesheets for the order.
- There are incomplete subcontract operations on the order.
To Close a Works Order
Open: Cim200 Works Orders > Works Order List
- Select required order(s) to close and click the Close button above the list view.
From the menu:
Open: Cim200 Works Orders > Processing > Close Works Orders
- Click in the white grid pane, then type or select the required works order.
1. Where any selected works orders have operations with no actual times recorded, a warning will advise that closing the order will cause the expected operation costs to be taken as actual costs and be included in the final order cost.
2. Set the Closure Date.
- This defaults to the system date.
- If Nominal Ledger integration is enabled in Stock Control Settings, the nominal postings are generated using the date entered here.
3. Review the details on each line. If the Close Status states Unable to Close, click on the line to see the Issues list below for details on what must be resolved before the order can be closed.
- Any lines that are Unable to Close will not be closed until the issues are cleared and the Close Status changes to OK.
4. To add more orders, click in the white grid pane below the lines already entered.
5. To remove an order from the list, highlight the order and click Remove.
6. Click Close Works Orders to close the eligible orders.
Outcomes from closing Works Orders
- The Works Order Status is changed from Completed to Closed. No more activity can be recorded against the order.
- The unit cost of the finished goods is calculated by dividing the total cost of the works order by the number of completed items.
- The built item completed stock is converted from unconfirmed cost to confirmed cost. This is reflected in Stock Valuation reporting and in Sales Profitability reporting if the stock has already been sold.
- The total cost of the Works Order is moved out of Work In Progress. If Nominal Ledger integration is enabled in Stock Control Settings, nominal postings are made to credit Work In Progress and debit the built item’s stock asset account.
