POP Create WIP question

[randva]

Macola 7.5.102e, Pervasive SQL

When I release a POP order, I have a drop down box with 3 choices:

N=Allocate components without GL distribution
W=Allocate components with GL distribution
Y=Issue components with GL distribution

My question concerns the difference between N and W. Does W debit the WIP account when the order is written? And is it then credited when the POP order is reported as produced?

What does the N option do? Does it just take care of any GL distributions when the order is produced?

Thank you in advance for any help on this question.

 

[TLeaders]

Randva

Does W debit the WIP account when the order is written? And is it then credited when the POP order is reported as produced? Yes

What does the N option do? Does it just take care of any GL distributions when the order is produced? Yes


When you release a POP order the program will allocate (reserve) the raw material inventory that is required for that order. The difference between N and W is that when using W GL Distributions are created based on the inventory allocations. Credits are written to the raw material inventory accounts and a debit to the wip account.

When you report production Wip W will reverse the original distributions. So you should see a set of debits to the raw material accounts and a credit to the wip account in the exact amount of the distributions made during the release.
Then for both Wip N and Wip W a new set of distributions is created based on the actual inventory that was issued.

These distributions are reversed in total so that ant cost changes that occurred to the raw material between the order release and report production are accounted for correctly. My suggestion would be to set up a test company and try a few scenarios until you find the one that works best for your company.

Good Luck
Tom