MFG/PRO 9.0 User Guide Volume 3: Manufacturing - QAD.com

Closing Work Orders
To close a work order, you must do the following two things:
1 Change the order’s status to Closed.
You can do this by setting Close to Yes when completed units
are received, or by using Work Order Maintenance (16.1).
2 Run Work Order Accounting Close (16.21) to post variances, clear
WIP, and close outstanding operations. Execute this program
regularly, at least at the end of each fiscal month, for completed
orders.
The system prevents component issues and work order receipts for a
closed work order. If you want to process inventory for a closed work
order, you must change its status back to Released.
Work Order Accounting Close
Work Order Accounting Close (16.21):
• Completes open work order operations.
• Calculates and posts work order variances for material, labor,
burden, and subcontract costs.
• Calculates and posts usage variances when the labor quantity
used differs from the standard.
For example, if it took six hours to complete an operation
scheduled for five hours, a labor usage variance of one hour is
posted.
• Calculates and posts rate variances for material and subcontract
when cost used differs from standard cost. If the Payroll module
or Actual Pay Rate Maintenance (14.13.21) is used, rate variances
are also calculated for labor.
For example, when the standard subcontract cost is $10 and the
PO cost is $12, the subcontract rate variance is $2.
• Reconciles the WIP account for closed work orders by calculating
and posting method change variances for any residual variances. WIP
balances cannot be changed after the work order variances are posted.
• Updates current labor and subcontract costs.
WORK ORDERS 121