I am in the process of migrating to ERPNext from another software and I have a situation that I don’t know how to handle. I have a batch of items in work in process that are waiting for parts from a supplier to be finished. I need to create a stock entry in ERPNext but I don’t know how I should handle work in process while migrating. should I just create a journal entry to the “work in process” account for the value of the incomplete items? would this be problematic down the road with perpetual inventory?
Have you considered adding another item but leave as WIP grouping?
So.
RM = Raw Material Group
WIP = Work In Progress Group
FG = Finished Goods Group
Item A (RM) + Item B (RM) = Item C (WIP)
Item C (WIP) + Item D (RM) = Item E (FG)
Does that make sense?
Thanks Abbas. It makes sense to me as a concept, but I’m still rather new to this and I don’t think I completely know how to implement it in ERPNext. Can you help me with a more detailed example? Thanks!
Ok, so if you setup the system so your machines are set, you would create a works order, allocate some material and the output would be a finished good.
You would setup a Item Code which is Item Group Finished Goods (you will need to create this in Setup >> Item Group Tree)
This item would have a BOM which is made up of items that have Item Group “Raw Material”.
You would raise a works order to produce the Finished Good item code which would then trigger the material allocation etc…
I am suggesting adding an extra Item Group called “WIP” which has the same flow as your finished goods (perhaps with a few less machines or half the process). Then you would create a Finished Good item which has the BOM of the WIP Item…
Does that make sense?
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Yes! this does make sense to me now. I think this method should work well for my situation. Thank you for your help!