Close Production Orders

Form ID: (AM506000)

The Close Production Orders process is used to financially close the production orders and set the work in process balance of the order to zero.

Once a production order is completed, additional transactions can still be posted against the production order; no more transactions are allowed once it is closed.

Tip:
A Production Order cannot be closed until it is completed and all batches from production, materials, and adjustments have been released. To find batches on hold you can use the Additional Filtering Conditions tab to add a filter to the Production Batch Register (AM622000) form for AMBatch.Status = On Hold. For batches with a status of Balanced, you can use the Release AM Documents (AM503000) form to find and release the batches. Alternatively, create a filter for the batch lookup on any of the transaction forms to select the status of On Holdor Balanced; saving the filter makes it available to any transaction form.

The primary purpose of this process is to reconcile the Work in Process total with amount of the WIP Completed. The WIP Balance box shows the difference between the WIP Total and the WIP Completed.

  • WIP Completed is the total value of receipts into inventory for the stock item. This amount is displayed in the MFG to Inventory box on the Totals tab of the Production Order Maintenance (AM201500) form.
  • WIP Balance is the sum of all costs posted to the production order from labor, materials, overhead, and tools. This amount is displayed in the WIP Total box on the Totals tab of the Production Order Maintenance (AM201500) form.
Attention:
Prior to reconciling the WIP Total with the WIP Completed, the close process will perform an check to see if there are any transaction batches that have not been released for a production order This ensures that the totals on the production orders accurately reflect the transactions and the WIP is reconciled correctly.

The period to post is defaulted from the business date and must be an active period. However, you can specify another active previous or future period. The process will use the period for the general ledger journal transaction that it will create.

The process creates a general ledger journal transaction. The process will then compare the total WIP posted to the production order with the amount of WIP that has been completed. If there is a variance, the application will create a WIP adjustment transaction on the WIP Adjustment (AM308000) form to adjust the WIP amount. The offsetting transaction will be to the WIP Variance account, and subaccount if subaccounts are used, as shown for each production order.

Attention:
When the Lock Production Orders Before Closing check box is selected on the Production Preferences (AM102000) form, all production orders with the Locked status are displayed. Orders that are completed or locked can be viewed on the Lock Production Orders (AM517000) form.

Form Toolbar

The form toolbar includes standard buttons and form-specific buttons and commands. For the list of standard buttons, see Form Toolbar and More Menu. The form-specific commands can be shown as buttons on the form toolbar, as commands on the More menu, or in both places. These commands are listed in the following table in alphabetical order.

Command Description
Process Financial closes the orders you have selected in the table.
Process All Financial closes all orders displayed in the table.
Unreleased Transactions Opens the Transactions By Production Order (AM000011) form, where you can view transactions generated for the orders you have selected in the table.

Summary Area

Element Description

Period

Period to post; it must be an active period.

Production Orders Table

The table lists all production orders with a status of Completed.

The table toolbar includes only standard buttons. For the list of standard buttons, see Table Toolbar.

Column Description
Selected If checked this production order will be closed.
Order Type This is the order type of the production order.
Production Number This is the production order status eligible to be financially closed.
Inventory ID This is the inventory item being manufactured
Subitem
This column is visible only if the Inventory Subitems feature is enabled on the Enable/Disable Features (CS100000) form.
Important:
The Inventory Subitems check box has been removed from the Enable/Disable Features (CS100000) form because the functionality associated with the Inventory Subitems feature will be phased out. If you have this feature enabled in your system, the associated functionality remains available. To disable the feature, contact your MYOB support provider.
Warehouse The warehouse form the production order but may not be the actual warehouse for any receipts.
Qty to Produce This is the quantity to produce on the production order.
Qty Complete This is the actual quantity completed. They do not have to be the same.
WIP Balance This is the total of all costs posted to the production order.
WIP Variance Account This is the account the WIP Balance amount will be posted to. You can use the Production Order Maintenance (AM201500) form to change the account and subaccount.
WIP Variance Subccount This is the subaccount the WIP Balance amount will be posted to. (This element appears only if the Subaccounts feature is enabled on the Enable/Disable Features (CS100000) form.)
Project The project ID referenced on the production order. This column appears only if the Project Management feature is enabled on the Enable/Disable Features (CS100000) form. For more information about production orders and projects, see Integration with Projects.
Project Task The task ID referenced on the production order. This column appears only if the Project Management feature is enabled on the Enable/Disable Features (CS100000) form. For more information about production orders and projects, see Integration with Projects.
Cost Code The cost code referenced on the production order. This column is available if the Cost Code feature is enabled on the Enable/Disable Features (CS100000) form. The feature can be used only with the MYOB Acumatica Construction Edition.