Manufacturers often use work orders to assemble the materials needed to produce an item.
Manufacturing Work In Process lets manufactures track work orders through the production process,from gathering materials, through shop floor assembly, to stocking finished goods.Assembly items built using Manufacturing Work In Process (WIP) are divided into the following processes:
1. Issue Work Order: Move raw materials to an assembly area (work center)
2. Complete Work Order: Assemble raw materials and stock finished goods
3. Close Work Order: Reconcile variances
To know where materials are in the manufacturing process, use WIP to track your materials and record
the number of:
■ Component materials in stock
■ Component materials consumed against a work order
■ Finished assemblies in stock
■ Assemblies you can build
Use WIP to track assembly component to identify the materials not used in the process.
Tracking goods and materials enables you to control your inventory and raw materials. Controlling stockcan help you avoid the following:
■ Tying up funds in stock or on the production floor
■ Unanticipated raw material stock-outs
NetSuite supports production processes with a long lead time and can track item assemblies as a work in
process.