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Migrating to ERPNext with existing Work in Process


#1

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?


#2

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?


#3

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!


#4

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?


#5

Yes! this does make sense to me now. I think this method should work well for my situation. Thank you for your help!