WIP Parameters (Oracle Work in Process)


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WIP Parameters

You can use WIP parameters to define modes of operation and to assign default values for various work in process functions. You can only define one set of WIP parameters per organization. The following table summarizes WIP parameters and their defaults:

Parameters Required? Default Value

Discrete

Default Discrete Class Optional Null

Default Lot Number Required Job Name

Respond to Sales Order Changes Required Always

Repetitive

Recognize Period Variances Optional All Schedules

Autorelease Days Optional 0

ATP

Component ATP Rule Optional Null

Average Costing

Default Completion Cost Source Required System Calculated

System Option Cond. Required Use Predefined Resources

Cost Type Cond. Required Null

Auto Compute Final Completion Optional No

Move Transactions

Shop Floor Status for PO Move Resources Optional Null

Require Scrap Account Optional Disabled

Allow Creation of New Operations Optional Disabled

Allow Moves Over No Move Shop Floor Statuses Optional Enabled

Backflush Default

Supply Subinventory Optional Null

Supply Locator Optional Null

Lot Selection Method Optional Expiration Date

Lot Verification Optional All

Intraoperation Steps

Intraoperation Steps Optional All are enabled

Table 1 - 2. (Page 2 of 2)

Parameters	Required?	Default Value

Discrete
Default Discrete Class	Optional	Null
Default Lot Number	Required	Job Name
Respond to Sales Order Changes	Required	Always

Repetitive
Recognize Period Variances	Optional	All Schedules
Autorelease Days	Optional	0

ATP
Component ATP Rule	Optional	Null

Average Costing
Default Completion Cost Source	Required	System Calculated
System Option	Cond. Required	Use Predefined Resources
Cost Type	Cond. Required	Null
Auto Compute Final Completion	Optional	No

Move Transactions
Shop Floor Status for PO Move Resources	Optional	Null
Require Scrap Account	Optional	Disabled
Allow Creation of New Operations	Optional	Disabled
Allow Moves Over No Move Shop Floor Statuses	Optional	Enabled

Backflush Default
Supply Subinventory	Optional	Null
Supply Locator	Optional	Null
Lot Selection Method	Optional	Expiration Date
Lot Verification	Optional	All

Intraoperation Steps
Intraoperation Steps	Optional	All are enabled
Table 1 - 2. (Page 2 of 2)

Discrete Parameters

The following parameters affect discrete manufacturing.

Default Discrete Class

If Category Default WIP Classes are not setup and you are defining a standard discrete job or completing a work order-less schedule, this parameter determines which accounting class is used as the default. See: Default WIP Classes and Associating WIP Accounting Classes with Categories.

You can only select an active, standard discrete accounting class when defining this parameter. See: Discrete Accounting Classes, Defining Discrete Jobs Manually, and Autocreating Final Assembly Orders.

Default Lot Number Type Parameter

Determines how lot numbers are assigned to discrete jobs. The options are as follows:

Job Name Base job lot numbers on the job name you enter when you define the job. This is the default.

Based on Inventory Rules Base job lot numbers on the lot number rules you defined in Oracle Inventory. See: Lot Control and Defining Revision, Lot, Serial Parameters.

Respond to Sales Order Changes

Determines if and how the system responds to changes to assemble-to-order (ATO) sales orders and their related discrete jobs. The options are as follows:

Never If you implement changes to a sales order in Oracle Order Entry, and that sales order is linked to one or more discrete jobs, the system ignores the sales order change and does not stop the current production for the discrete job.

Always If you unassign the configuration item from the sales order using the ATO Configurable Item window in Oracle Order Entry/Shipping and if the linked jobs are Unreleased, then the statuses of the linked jobs are changed to On Hold. See: Linking ATO Configurations.

When Linked 1 to 1 If you implement changes to a sales order in Oracle Order Entry, and that sales order is the only sales order linked to a single discrete job, Oracle Order Entry automatically changes the status of the discrete job to On Hold. You can then update it to reflect the changes to the sales order.

Repetitive Parameters

The following parameters affect repetitive manufacturing.

Recognize Period Variances

Determines which repetitive schedule variances are posted to the general ledger when an accounting period is closed. The options are as follows:

All Schedules Post variances for all repetitive schedules.

Cancelled and Complete- No Charges Only Post variances for repetitive schedules with statuses of Cancelled or Complete-No Charges.

Autorelease Days

Determines the time period within which the system automatically releases the next Unreleased schedule.

When you complete a repetitive schedule, the system searches within the autorelease time frame for an Unreleased schedule, or for a schedule with a status of Released, Complete, or On Hold. If one exists, the status of the newly completed schedule changes to Complete-No Charges and the future schedule is automatically released. If no such schedule exists, the status of the schedule changes to Complete. If more than one schedule exists within the autorelease time frame, only one schedule is released.

ATP Parameter

The following parameter affects material availability checking.

Component ATP Rule

Determines which ATP Rule is used as the default when checking the material availability of component requirements. You can enter any user-defined ATP rule. See: Viewing Component ATP Information and Defining ATP Rules.

Average Costing Parameters

These parameters affect how WIP assembly completion transactions are costed. The Default Completion Cost Source, Cost Type, and System Option parameters are defaulted when you define standard and non-standard accounting classes in the WIP Accounting Classes window. They can be overridden at the account class level. The Auto Compute Final Completion parameter is defaulted when you complete jobs. It also can be overridden.

Additional Information: You can only set these parameters if your current organization has been defined as an average cost organization in the Oracle Inventory Organization Parameters window. See: Organization Parameters Window and Defining Costing Information.

Default Completion Cost Source

This parameter determines how resource costs are determined as assemblies are completed from jobs into inventory.

If this option is set, resources can be costed at either the actual resource costs or at the resource predefined cost depending on how the System Option parameter is subsequently set.

When completing assemblies from a non-standard job with no routing, the resource rate associated with the Average Rates cost type is used.

If the option is set, you must choose a user-defined cost type using the Cost Type Parameter. This cost type is then used to determine the resource cost for the assemblies being completed.

Additional Information: If there are uncleared costs left in the job, they are posted to the job variance accounts when the job is closed. Residual costs could be left in the job if: 1) the Auto Compute Final Completion option is set, but not all assemblies are completed or scrapped or 2) the job earns costs between the last final completion and the close transaction.

System Option

If you select the System Calculated completion cost source, you must select a System Option. The available options are as follows:

User Actual Resources Resources costs are determined based on the actual costs that have been charged to the job.

Use Predefined Resources Resources costs are determined using the predefined resource cost.

Cost Type

Determines which cost type to use as the default when the Default Completion Cost Source is User-Defined. You can only select a Cost Type if the Default Completion Cost Source parameter is set to User Defined. See: Defining a Cost Type.

Auto Compute Final Completion

Determines whether the Final Completion in the Completion Transaction window defaults to checked (Yes).

Move Transaction Parameters

The following parameters affect move transactions.

Shop Floor Status for PO Move Resources

Determines which 'no move' shop floor status is assigned when assemblies are moved into the Queue intraoperation step of an outside processing operation that has PO Move resources assigned to it. See: Defining Shop Floor Statuses.

Moves from, but not to, outside processing steps with this status are disallowed except when the move transaction is launched by the receipt of a purchase order in Oracle Purchasing. This ensures that the same number of assemblies are moved into and out of Queue at an outside processing step. Problems in tracking work in process and cost variances are thus avoided. See: Requisitioning Outside Processing Items.

Require Scrap Account

Determines whether a scrap account is required when you move assemblies into and out of the Scrap intraoperation step of an operation. It also determines how scrap transactions are processed. If you do not specify that a scrap account is required, it is optional.

If you enter a scrap account as you move assemblies into a Scrap intraoperation step, the system debits this account and credits the job or repetitive schedule elemental accounts at standard through this operation. If you enter a scrap account as you move assemblies out of a scrap intraoperation step, the system credits this account and debits the job or repetitive schedule elemental accounts at standard through this operation. If you do not provide a scrap account, the cost of scrap remains in the job or schedule until job or period close and is written off as variance.

Allow Creation of New Operations

Determines whether you can or cannot add an operation to a discrete job work in process routing during a move transaction. For example, you may want to add an operation to keep track of rework you were not expecting.

Allow Moves Over No Move Shop Floor Statuses

Determines whether moves are disallowed if an intraoperation step that disallows moves exists at an autocharge operation and intraoperation step between the From and To operations or at intervening intraoperation step at the From and To operations if they are direct charge. If an intraoperation step that disallows moves is found, a warning message is displayed and the move is disallowed.

Additional Information: The Move Transactions: Allow Skipping Over No Move Statuses security function can be set to override 'no move' shop floor statuses. See: Security Functions.

Direct charge operations between the From and To Operations are not considered when the system checks for 'No Move' shop floor statuses. Scrap and Reject intraoperation steps at autocharge operations are also not considered. See: Shop Floor Statuses.

Backflush Default Parameters

The following parameters affect backflush transactions.

Supply Subinventory

Determines which supply subinventory and, if required by the subinventory, locator are used when backflushing Operation Pull and Assembly Pull components that do not have defaults defined at the bill of material component or at the inventory item level.

You can select an expense subinventory, if the Oracle Inventory Allow Expense to Asset Transfer profile option is set to Yes. See: Inventory Profile Options.

Supply Locator

Lot Selection Method

Determines how lot controlled Assembly Pull and Component Pull component items are selected during backflush transactions. The options are as follows:

Expiration Date Backflush lots are automatically selected based on their expiration date and the first in-first out (FIFO) method or, if the lot is not under shelf life control, the receipt date and the first in-first out (FIFO) method.

Manual Backflush lots must be manually selected.

Receipt Date Backflush lots are selected based on their inventory receipt date using the first in-first out (FIFO) method.

Additional Information: This parameter does not apply to components that are under both lot and serial control. When you backflush a component under both lot and serial control, you must enter both the lot and the serial number.

Lot Verification

Determines how lots are verified during backflush transactions. The options are as follows:

All Verify that the lots automatically selected were the ones consumed by the assemblies.

Exceptions Only Verify exceptions only. If the lot requirement for the component cannot be filled automatically using the FIFO method, you can assign lots to components manually.

Intraoperation Steps Parameter

Determines which intraoperation steps are enabled in your WIP routing operations. The options are Queue, Run, To Move, Reject and Scrap. See: Intraoperation Steps.

The Queue intraoperation step is automatically enabled for all operations and cannot be disabled. The To Move intraoperation step, even if disabled here, is automatically enabled for the final operations in routings so that assemblies can be completed into inventory.

Job Name	Base job lot numbers on the job name you enter when you define the job. This is the default.
Based on Inventory Rules	Base job lot numbers on the lot number rules you defined in Oracle Inventory. See: Lot Control and Defining Revision, Lot, Serial Parameters.

Never	If you implement changes to a sales order in Oracle Order Entry, and that sales order is linked to one or more discrete jobs, the system ignores the sales order change and does not stop the current production for the discrete job.
Always	If you unassign the configuration item from the sales order using the ATO Configurable Item window in Oracle Order Entry/Shipping and if the linked jobs are Unreleased, then the statuses of the linked jobs are changed to On Hold. See: Linking ATO Configurations.
When Linked 1 to 1	If you implement changes to a sales order in Oracle Order Entry, and that sales order is the only sales order linked to a single discrete job, Oracle Order Entry automatically changes the status of the discrete job to On Hold. You can then update it to reflect the changes to the sales order.

All Schedules	Post variances for all repetitive schedules.
Cancelled and Complete- No Charges Only	Post variances for repetitive schedules with statuses of Cancelled or Complete-No Charges.

	If this option is set, resources can be costed at either the actual resource costs or at the resource predefined cost depending on how the System Option parameter is subsequently set.
	When completing assemblies from a non-standard job with no routing, the resource rate associated with the Average Rates cost type is used.
	If the option is set, you must choose a user-defined cost type using the Cost Type Parameter. This cost type is then used to determine the resource cost for the assemblies being completed.

User Actual Resources	Resources costs are determined based on the actual costs that have been charged to the job.
Use Predefined Resources	Resources costs are determined using the predefined resource cost.

Expiration Date	Backflush lots are automatically selected based on their expiration date and the first in-first out (FIFO) method or, if the lot is not under shelf life control, the receipt date and the first in-first out (FIFO) method.
Manual	Backflush lots must be manually selected.
Receipt Date	Backflush lots are selected based on their inventory receipt date using the first in-first out (FIFO) method.

All	Verify that the lots automatically selected were the ones consumed by the assemblies.
Exceptions Only	Verify exceptions only. If the lot requirement for the component cannot be filled automatically using the FIFO method, you can assign lots to components manually.