Closing Work Orders

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).

Note: When a work order is referenced by a flow scheduled order and you close the flow scheduled order using Flow Schedule Close (17.13.19), the system automatically changes the work order’s status to Closed. You can reopen it using Work Order Maintenance. See User Guide: QAD Lean Manufacturing.

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.

The system records the work order close date (the system date). The system also records the user ID of the person who closed the work order.

The work order close date and user ID are captured when the work order is closed through the following:

Although you are not prompted to enter the work order close date or your user ID, these items are captured by the system and appear automatically on two work order reports:

Work order close and receipt dates are recorded on discrete work orders only. Scheduled and cumulative work orders, created through Repetitive and Advance Repetitive, do not include this functionality.

The work order close and receipt dates do not affect the effective date of the accounting close function. GL period control does not apply to the work order and receipt dates.

See General Ledger Period End.

Work Order Accounting Close (16.21):

• 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 pay rates are defined in Actual Pay Rate Maintenance (14.13.21), 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.

For Repetitive programs, Cumulative Order Accounting Close (18.9) performs the same operations, but only for repetitive work orders. Work Order Accounting Close (16.21) closes both repetitive work orders and standard work orders.

Since you can enter a GL effective date on work order, shop floor control, and repetitive transactions, a strict procedure is not required to account correctly for activity in the general ledger. Some reports, such as Work Order WIP Cost Report (16.3.5; 16.3 29 for enhanced .NET UI version), are sensitive to period-end procedures. Use the following outline to write a procedure that fits your needs.

1 All work order, shop floor control, and repetitive transactions should be completed and reviewed before starting the new period, including the following:

• Labor Feedback by Work Order (16.20.1), by Employee (16.20.2), by Work Center (16.20.3)

3 All open cumulative work orders in the Repetitive module should be changed to Closed.

4 Run WIP Material Cost Revaluation (16.22) to update allocated, released, and closed work orders.

5 Run Work Order Accounting Close (16.21) and Cumulative Order Accounting Close (18.9).

6 Print Work Order WIP Cost Report (16.3.5) and any other time-sensitive reports required.