The WIP or Work in Process sub-ledger consists of the items and quantities which have been transferred into the shop order or manufacturing system. The work in process sub-ledger balance is made up of the total of the component items which have been pulled out of inventory and which are being used to build other items, and which have not yet been converted into the finished good.
The cost of each component item in the work in process sub-ledger is based on the average weighted cost of the item at the time it was pulled out of the inventory sub-ledger. The WIP sub ledger total or value is calculated by multiplying the “pulled” quantity of each open Shop Order line item by the cost that is stored in the line. The WIP sub ledger is increased when Shop Orders components are “Pulled” out of inventory. The WIP sub-ledger is decreased when shop orders are completed or converted into finished goods or when a pulled shop order is deleted and the items are returned to inventory. A complete listing of the transactions that affect the WIP sub-ledger is presented in the Reference Information section of this document.