After the preparations are completed, the first step is to define “Work Order Posting Groups”.
Creating Work Order Posting Groups
By searching for “Work Order Posting Groups” the list of same name can be opened:
The new Work Order Posting Groups can now be recorded in the list view. Entry Fields are:
- Code
- Description
- Assignment to Gen. Business Posting Groups
- Assignment to VAT Business Posting Groups
- Checkbox „Transfer to Purchase“
- Checkbox „Transfer to Sales“
The checkboxes cause the business posting group to be overridden, e.g. of a vendor, if, for example, external service is ordered for a vendor and a work order and the expense is to be posted to a defined expense account, e.g. G/L account – expense external service repair.
Possible scenario:
In the chart of accounts, external service expense is differentiated into maintenance/inspection and repair, i.e. different G/L accounts have to be posted depending on the work order type:
- Solution 1: several work order posting groups, as mentioned before,
- Solution 2: differentiation of the service into two product posting groups and thus two different items (e.g. „external service maintenance/inspection“ as well as „external service repair“), which is the most frequently used solution variant.
Setup Work Order Posting Groups
Next, the work order posting groups must be set up. The setup can be done by clicking on "Setup".
The list „Work Order Posting Setup“ is opened:
Work Order Posting Setup - Consumption of inventory-managed Items
For inventory-managed items, the „COGS Account“ column is relevant for the assignment of the expenses account. The „Stock Account“ or „Stock Account (Balance Sheet – Current Assets)“ is set up as usual in BC with the „Inventory Posting Setup“.
So, for posting work order consumption to Financial Accounting, the information from the „Work Order Posting Setup“ is loaded and used for posting.
Capitalized Indirect Costs
In the case of investments, the column „Capitalized Indirect Costs“ may also be relevant. This is because this account is only posted if a percentage is enterered in the field „Overhead Rate % (Capitalization)“.
Work Order Posting Setup – Feedback for Inhouse-Services
The configuration of the feedback of Inhouse-Services at the „Work Order Posting Setup“ is quite simple.
The relevant columns are „Resource Consumption Account“ and „Resource Adjmt. Account“. The clearing accounts for the Inhouse-Services or Machine Dispositions are entered there.
Capitalized (Inhouse-) Services and Indirect Costs
In the case of investments, the column „Capitalized Services“ may be relevant. Then the account for „Capitalized Services“ can be stored or if these amounts should also be visible outside the regular chart of accounts, a clearing account can be stored there, as with „Resource Consumption“ and „Resource Adjmt.“.
Work Order Posting Setup – External Service Purchase or Expenses
The BC General Posting Setup defines the accounting of expenses for external services.
The combinations of work order posting group and product posting group must again be entered in the work order posting setup, because they are checked for existence during posting.
External Services and Capitalized Indirect Costs
Only if an „Overhead Rate % (Capitalization)“ is defined for an external service item, an account must be defined for the capitalized indirect costs.
Otherwise no account has to be assigned, only Work Order Posting Group and Product Posting Group have to be recorded.
All account assignments of the purchase of external services are made in the „General Posting Setup“ of BC.
The combinations of work order posting group and product posting group must again be entered in the work order posting setup, because they are checked for existence during posting.
Work Order Posting Setup – Other Columns
There are other columns in the Work Order Posting Setup, which are explained below.
Indirect Cost Account and Indirect Costs Adjmt. Account
These two columns are historical, are no longer used and can therefore be hidden.
Detail Consumption - and Detail Adjmt. Account
These columns „Detail Consumption Account“ and „Detail Adjmt. Account“ are only necessary in case of automatic additional posting to technical objects.
If the sliding field „Posting Detail Costs to G/L“ is activated at the „Work Order Management Setup“, additional separate postings are generated.
Note:
- This function may generate a large number of G/L items, because each consumption or expense is posted once again for each object stored. BC therefore generates 2 G/L items for each posting.
Example: 3 technical objects in the work order are 3 items times 3 object, resulting in 9 items. For each of these, 2 G/L items are created, so a total of 18 G/L items.
Other Expenses
The Column „Other Expenses“ is relevant when posting to a work order in the financial accounting via the FA Journal.
maintool adds another account type to the FA Journal. The new account type “Work Order” enables the transfer of expenses from a G/L account to a work order. This entry is always a net amount entry and maintool determines the contra account (of the work order) via this column “Other Expenses”.
Work Order Rounding Account
The Entry of a „Work Order Rounding Account“ is important, if posting of detail costs is activated. The possible rounding differences are posted to the stored account.
Configuration of Work Order Dimension Setup
The Configuration of the “Work Order Dimension Setup” can be made in parallel or after the Configuration of the “Work Order Posting Setup”.
Note:
- This configuration controls the use of dimensions e.g. cost center and cost object within the posting of consumptions and expenses.
- There is no comparable functionality In BC.
By marking a line in the „Work Order Posting Setup“, the „Work Order Dimension Setup“ can be opened by clicking on „Navigate“, „Setup“ and then „Dimension Setup“.
The combination of „Work Order Posting Group“ and „Product Posting Group“ has been extended by the column „Capitalization“.
Note:
- A maximum of two entries per combination of Work Order Posting Group and Product Posting Group are possible in the Work Order Dimension Setup(„Capitalization“ = „Yes“ or „No“).
The „Work Order Dimension Setup“ must be oriented to the „Work Order Posting Setup“. This means, that if a column in the „Work Order Posting Setup“ is provided with an account, the corresponding column in the „Work Order Dimension Setup“ must also be filled.
Work Order Dimension Setup - Consumption of inventory-managed Items
For the posting of consumptions, two pieces of information are required, which must be stored in this setup:
- Posting of the change to the inventories (stock or warehouse account)
- Posting of the change to the expense account
In both columns, the individual options are available for selection depending on the type of posting:
- No Code ➝ without dimensions,
- Work Order Ledger Entry ➝ with dimensions of the referring Work Order Ledger Entry,
- Default Code ➝ with Default Code (definition with „Assist-Button“).
Work Order Dimension Setup - Feedback for Inhouse-Services
For the posting of Inhouse-Services or Operating Material (Resource - Person or Machine) the columns „Resource Consumption Account Posting“ and „Resource Adjustment Account Posting“ are required.
For these colums there is an additional selection criterion „Resource Card“, which causes the posting to access the dimensions of the respective resource (e.g. for internal activity allocation -> debit work order item and offsetting entry employee cost center).
Work Order Dimension Setup - Purchase/Expense of External Services
For the „Work Order Dimension Setup“ concerning Purchase/Expense of external services, the same prerequisites apply as for the „Work Order Posting Setup“.
The combination of work order Posting Group and Product Posting Group must be entered, but only the column for the „Capitalized Indirect Costs“ must be taken into account if these are to be used. Further setting options do not exist at this point.
Work Order Dimension Setup - Capitalization and other Columns
The other column also correspond to those of the „Work Order Posting Setup“.
The only column that does not have a matching counterpart in the „Work Order Posting Setup“ is the „Work Order Account Posting“ column. It is only needed in case of Capitalization. The account number in these cases always comes from the work order.
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