An internal Work Order is a Work Order to service or repair equipment that is or has been included in your product file.
This can be for either rental equipment or sales equipment or
equipment that has been sold to a customer.
An example of an internal Work Order for sales equipment would be a
traded-in Bobcat which will be fixed up to be resold.
Disposed or sold products can be repaired, but cannot receive
additions.
A setting in the Company Estimate and W.O.
Parameters controls the ability to close a Work Order out to a
repair or to an invoice, if any parts are still Back Ordered on the
W.O.
This flag also prevents a W.O. from being converted to a repair or
to an invoice, if there are any items with an outstanding balance
on a Purchase Order referencing that W.O. number. A warning is
generated to the operator listing the P.O. numbers and the W.O.
cannot be closed until the items on the P.O. are received, or the
reference to the W.O.# is removed in Purchase
Orders.
For more information on how to setup internal Work Orders, refer to Internal Work Order Process.
When the repair or maintenance to the equipment has been
completed in Work Orders click the
CLOSE W.O. button, and then click
REPAIR to close the W.O. converting it to an internal
repair.
The prompts are:
If this program was accessed from the menu, enter the W.O.# or look it up in the Estimate/Work Order Search window.
The window lists these parts with the sequence numbers of the
part records per the W.O.
This is an information window only, and exiting the window returns
directly to the Work Order.
The costs must be corrected before the W.O. can be converted to a repair as follows:
Sales part with no Cost and with no Cost Type - Because costs
can only be entered in this Cost field window on the W.O.
for sales part that are flagged to Prompt for Cost and the
Cost field is display only for all other products, use the
utility Update Product Costs & Prices
to correct the cost.
This updates the cost in the Sales
Inventory for future sales of this item.
This flag also prevents a W.O. from being converted to a repair
or to an invoice, if there are any items with an outstanding
balance on a Purchase Order referencing that W.O. number.
A warning is generated to the operator listing the P.O. numbers and
the W.O. cannot be closed until the items on the P.O. are received,
or the reference to the W.O.# is removed in Purchase Orders.
Note: The product description and serial number on the original W.O. will not be changed.
The repair and maintenance charges will be added to this product number.
Example: When doing an engine overhaul to a traded-in Bobcat,
the repair charges can be capitalized and the value of the repair
added to the Bobcat.
The Bobcat's Fixed Asset Tag would increase by the value of the
repair.
Example: A Rental Bobcat has an engine upgrade.
TOTAL PARTS 50.00 Cost TOTAL LABOR 300.00 Internal labor TOTAL OTHER 5.00 shop supplies ------- TOTAL REPAIR 355.00
When a Work Order is closed out to an Addition, the posting with the next Daily Close would be:
Parts Inventory is CREDITED Acct# 1260 for $50.00 Internal Shop Labor is CREDITED Acct# 5000 for $300.00 Shop Supplies is CREDITED Acct# 4210 for $5.00 Rental Equipment Inventory is DEBITED Acct# 1300 for $355.00(Bobcat Asset Acct)
Note: Labor costs and Other costs always use the selling price
Each from the Work Order.
Generally the labor rate selected on an internal Work Order is a
reduced rate to reflect the true cost of shop wages.
Be certain that the correct G/L accounts have been assigned for
internal costing of Labor and other services.
When an Addition is posted and the Post Internal Work Order
Labor To GL feature has been activated in the Divisional Work Order Parameters for the Work Order
division, the Credit for Labor is then posted to the internal
"Labor Recovery" G/L account defined in Divisional Work Order Parameters.
The Debit still posts to the "Inventory" account but with the
division of the Fixed Asset Tag.
Click Repair to add the repair and maintenance charges to
this product number.
It will also create repair history for this item.
Disposed Rental Inventory can be repaired.
Labor on internal repairs is NOT usually expensed to the General
Ledger, since Labor is already expensed with Wages and payroll.
The exception would be if labor needs to be tracked for full cost
recovery by division, and then the Post Internal Work Order
Labor To GL feature can be activated in the Divisional Work Order Parameters can be set to cause
labor costs to post to the G/L through the Rental Journal
Transaction Report in Daily Close 3
when an Internal Work Order is closed for
service on a Rental or Sales product.
Note: Both the W.O. division and the Fixed Asset Tag division must be flagged in Divisions as G/L posting divisions.
Other miscellaneous costs (any Services) are NOT expensed to the General Ledger, as these costs would be expensed when purchased in Accounts Payable.
The parts inventory would be credited and the G/L Account for the Repair Charge Code selected below will be debited with the parts cost.
Example: A compressor has engine maintenance.
TOTAL PARTS 20.00 Cost - to be expensed to Repair Exp when purchased TOTAL LABOR 60.00 Internal labor - expensed by wages TOTAL OTHER 5.00 shop supplies - expensed when purchased ------- TOTAL REPAIR 85.00
The posting transactions would be:
Parts Inventory is CREDITED Acct# 1260 for $20.00 Repair Expense Acct is DEBITED Acct# 4810 for $20.00 (Repair Charge Code)
If this is an Addition, and the product is a rental item, select
the Fixed Asset Tag # on which to record the added value of this
addition.
A selection drop-down list is provided displaying the list of Fixed
Asset Tags for this product with the serial number on each tag.
An Addition note is added to the selected tag with the date,
source and amount.
These can be viewed in Rental Inventory in
the window on the Additions field of the appropriate Fixed
Asset Tag.
If the product is a regular sale item, the repair costs will be included in the average cost calculation of the product.
Repair Date Range Control:
If the operator does not
have the ability to over-ride the current date range, the transfer
date will be checked to make sure the date is valid against the
date ranges set as acceptable for module WORT in Date Range Control.
If the processing to assign a Repair Code to each detail on the
W.O. is activated in the Company Estimate and
W.O. Parameters, the Repair Code defaults from the Work Order
and cannot be changed.
If more than one Repair Code has been used on the W.O. the
description Multiple Codes is displayed.
If the Prompt For Maintenance Codes On Work Order Details feature is not being used, enter the appropriate code or select it from the drop-down list as setup in Repair Maintenance Code.
For repairs on rentals this value defaults from the Default Repair Charge Code defined in Rental Product Classes or Sales Product Classes but can be over-typed as required.
For internal repairs customer # REPAIR can be setup for the sole purpose of tracking the sales history of parts used internally by your service department as outlined in Internal Work Order Process.
Uncheck this box if a location transfer is not required after the Repair is completed.
Check this box to generate and close an Inventory Transfer for the rental item after the
Repair is completed.
This provides the ability to move the equipment from the service
area location back to the rental yard.
Transfer Date Range Control:
If the operator does not
have the ability to over-ride the current date range, the transfer
date will be checked to make sure the date is valid against the
date ranges set as acceptable for module RSTH in Date Range Control.
Note: This is considered a type M - Manual transfer.
The current status code for this product displays.
Type in the new code for this product now that service is
completed, or select from the valid codes in the Product Status Code Search.
Only status codes having the same "Allow Depreciation" flag can be
re-assigned.
Any change to the Product Status Code is tracked in Status Code Change History for WOWH20.
The Work Order will be deleted from current Work Orders and moved to history.
A Repair History record is written that is included in the Repair
History inquiries and reports, referencing the Work Order
number.
A completed maintenance history for this product can be generated
from Print Repair Transactions.
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