Inventory and Work Orders

Raw material inventory can be allocated at different times in the life cycle of a work order. You can choose to automatically allocate work order components when work orders are initially entered. Alternatively, you can manually allocate work orders using the Allocate Work Order Components screen. The decision regarding the allocation of work orders is important. If work orders are entered but not put into production for a long period of time and you are automatically allocating components, this will prematurely trigger order points in Purchasing and needlessly tie up capital in your inventory.

You can choose to not allocate work order components by simply not automatically allocating work order components and not using the Allocate Work Order Components screen.

In addition to component allocations, the finished goods of a work order can show to be on order at different times depending on your inventory needs. You can choose to have work order finished goods on order when the work order is allocated, which might be as the work order is entered if you are automatically allocating work orders, or wait until the components are released to production. All work order finished goods will be on order at the time the components are released regardless of other settings.
When work orders are completed, the finished goods are removed from on order.