Managing Cumulative Orders

The system keeps a running total for each combination of items, sites, production lines, product structures, and routings using a cumulative order. The cumulative order tracks work-in-process (WIP) costs and quantities for repetitive production. A cumulative order is created for a profile that defines the site, item number, production line, routing code, BOM/formula code for the order, and start and end effective dates.

Cumulative orders can be created three ways:

When a cumulative order is created, a cost rollup establishes the cumulative order cost. Cumulative orders have an assigned ID number, but no order number.

Repetitive transactions create a cumulative order when they cannot find one with the same profile (site, item, production line, routing, BOM or formula code) where the effective date range includes the effective date of the repetitive transaction. The system sets effective dates on new cumulative orders using the parameters defined in Repetitive Control.

When you run an Advanced Repetitive transaction or create a cumulative ID with an Advanced Repetitive maintenance program, the system:

• Searches for discrete or scheduled subcontract purchase orders associated with subcontract routing operations. See Managing Subcontracting.

• Automatically updates blank ID fields on subcontract purchase order lines with the newly created cumulative order ID.

• Automatically updates blank subcontract operation fields with the subcontract operation for the item on the purchase order.

• Replaces any existing, expired cumulative order IDs with an open cumulative order ID on subcontract purchase orders.

For scheduled orders, the system first checks the effective dates for the scheduled order line. If the effective dates indicate that the scheduled order line expired, the system does not update the line with the new open cumulative order ID.

When standard costing is used at the site on the cumulative order, recording repetitive transactions generates rate variances and creates GL entries for them. Usage and method variances are accumulated and posted when you run one of the following:

• Post Accumulated Usage Variances (18.22.9) generates GL entries for usage and method change variances accumulated since this function was last run.

• Cumulative Order Close (18.22.10) closes cumulative orders and creates GL entries for usage and method variances accumulated since Post Accumulated Usage Variances was last run. You can transfer WIP balances to another cumulative order or post them to Method Change Variance.

Post Accumulated Usage Variances and Cumulative Order Close can be run in report-only mode if needed.

All rate and usage variances are measured against the cumulative order cost. GL scrap entries are not created until you run either Post Accumulated Usage Variances or Cumulative Order Close.

Use Cumulative Order Browse (18.22.7) or Cumulative Order Report (18.22.8) to review cumulative order information including start and end effective dates and status.

Use Cumulative Order Create (18.22.11) to create new cumulative orders in advance in a batch-oriented setting. This prevents the system from having to create them during repetitive transactions, and ensures a better response time for items with many components.

To use this function, orders must already exist in the system. The new order is based on the old, with a different effective date. For each cumulative order selected, the system checks to see if a cumulative order exists with an effective date range that includes the day after the entered End Effective date. A new cumulative order is created if none exists. The Start and End Effective dates of the new cumulative order are set based on the End Eff Default Method in Repetitive Control.

See End Eff Default Method.

A cumulative order is created for a profile that defines the site, item number, production line, routing code, and BOM/formula code for the order, and start and end effective dates. Two orders that have the same profile cannot have overlapping effective dates. When a cumulative order is created:

• Blank cumulative order ID and operation fields on subcontract scheduled orders or discrete purchase orders are updated with the new ID and the subcontract operation from the routing. See Managing Subcontracting.

Use Cumulative Order Close (18.22.10) to select and close open cumulative orders according to various criteria. You can optionally create successive cumulative orders and transfer WIP queue balances to them. Cumulative orders must have an end effective date on or before the End Effective value you enter. Orders with a blank end effective date will not be selected.

Note: To close orders with blank end effective dates, first enter an end effective date using Cumulative Order Maintenance (18.22.6).

Closing a cumulative order performs the same processing as the Post Accumulated Usage Variances transaction. Variances are calculated, posted, and reported. When Transfer WIP is Yes, WIP queue balances are transferred from the closed cumulative orders to new cumulative orders.

To close a cumulative order before its end effective date, use Cumulative Order Maintenance to set the end effective date to yesterday’s date. The system creates a new cumulative order for the balance of the period if the End Eff Default Method is set to 1 or 2 in Repetitive Control (18.22.24).

To transfer WIP values and quantities from closed orders to new cumulative orders, set Transfer WIP to Yes in Cumulative Order Close. The system searches for a cumulative order with the same profile (site, item number, production line, routing, and product structure code) and a start effective date equal to the day after the end effective date specified in the selection criteria.


If	Then
An open cumulative order exists,	the system receives the WIP quantities of the cumulative order being closed.
A closed cumulative order exists,	WIP quantities do not transfer.
There is no cumulative order,	the system creates a new one to which WIP is transferred.

Cumulative Order Close does the following for each operation in the cumulative orders selected for processing:

• When Transfer WIP is Yes, this is the WIP Transfer account specified in Advanced Repetitive Accounting Control (36.9.12).

When Transfer WIP is Yes, the system transfers WIP queue quantities from each cumulative order operation that meets the following conditions:

The system follows these steps to transfer WIP queue balances from closed cumulative orders to new orders:

1 For each operation with a WIP quantity to transfer, the system searches for an operation in the receiving order with the same operation code. If it finds one, it proceeds with the transfer. Otherwise, it ignores that operation and does not transfer the WIP.

Note: For the system to transfer WIP to the first operation in the receiving order, the corresponding operation in the transferring order must also be the first operation, in addition to having the same operation code. Unless both these conditions are met, the system ignores the operation and does not transfer WIP.

2 The system transfers the WIP queue quantities from the old cumulative order operations to the output queues in the receiving order operations.

4 The system generates the appropriate GL transactions to transfer the WIP value to the new cumulative order.

5 When the cost of the WIP queue inventory for an old cumulative order operation differs from the cost at the receiving operation, the system posts the difference to Method Variance.

After these calculations are complete, a residual value may remain in WIP. This is because when the system debits WIP during repetitive reporting transactions, fractional values may remain in WIP due to rounding differences. These residual values accumulate in WIP until the cumulative order is closed. Cumulative Order Close posts the residual WIP value from each closed cumulative order to Method Variance.

You can run Cumulative Order Close in report-only mode as needed.

Use Cumulative Order Maintenance (18.22.6) to create new cumulative orders manually or maintain the start and end effective dates on an existing order. You cannot change effective dates so that they overlap those on another cumulative order for the same profile. You can also delete closed cumulative orders.