Close Internal Work Orders

Work Order Menu -> Work Orders -> CLOSE W.O. button -> REPAIR button -> Close Internal Work Order

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:

WORK ORDER #

If this program was accessed directly form Work Orders, the W.O. number is displayed.

If this program was accessed from the menu, enter the W.O.# or look it up in the Estimate/Work Order Search window.

ZERO COST WORK ORDER PARTS Window

This Zero Cost Parts window only appears if any parts with no cost were used on the W.O.
This includes sales parts with no cost in the product file and also sales parts with varying costs that are flagged to prompt for the cost when sold or used, as set in Sales Inventory.

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 Cost Type Prompt for Cost - In the Parts window on the W.O. move to the zero cost sales part record on the corresponding Sequence#, and window on the Each field to access the Cost field.
Enter the appropriate cost per unit. This is the cost of the part used only on this W.O. and does not update the cost in the product file.
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.

Back Ordered Parts Warning:

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.
A warning is generated to prevent the W.O. from being closed, and parts must be issued before the W.O. can be converted to a repair

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.

TOTAL PARTS

The total cost of the parts used on the W.O. is displayed.
After posting, the revenue history on parts used is tracked by customer and also by item in Revenue History.

TOTAL LABOR

The total labor charges display.

TOTAL OTHER

The total other charges includes all other services from the Work Order.

PRODUCT #

The product # entered into the Make/Model field in Work Orders displays.
If the wrong product number displays, over-type with the correct product number or select it form the window. This must be a valid product number in the product file.

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.

CLOSE WORK ORDER AS

Select one of the following actions:

Click Addition when the repair charges should be added to the value of the equipment being repaired.
The repair charges include parts cost, labor and other (tax is not included).
Disposed Rental Inventory cannot receive additions.
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.
Posting Additions:
The addition charges are posted to the General Ledger when the next Daily Close is run, printing on the Rental Journal Transactions report from Daily Close 3.
Additions follow different posting rules than regular repairs because the repair costs are capitalized instead of expensed.
The posting of Additions is as follows:
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.
Posting Repairs:
- Generally only the parts costs are expensed to the General Ledger when the next Daily Close is run, printing on the Rental Journal Transactions report from Daily Close 3.
- 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)
```

ASSET TAG#

This field does not apply to Repairs or to Sales parts.

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.

SERIAL #

If the product is a serialized sale item, enter the Serial # or select it from the drop-down list of available serial numbers for this part.
The serial number must already have been received in A/P invoicing.
The value of repair will be added to the Cost on the Serial # record.

If the product is a regular sale item, the repair costs will be included in the average cost calculation of the product.

REPAIR DATE

Enter the date when the repair or maintenance was completed.
This date will be used for posting the repair charges to the General Ledger and for creating the Repair History records.

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.

REPAIR CODE

The Repair/Maintenance Code assigns a basic description to the type of job completed that is referenced in Repair History reporting.

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.

CHARGE CODE

The Repair Charge Code determines the G/L Account used to expense the Parts used on the repair, and is also used in Repair History reporting.
This associated G/L Account is not used when an Addition is selected, or for labor and services on the repair.

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.

POST TO CUSTOMER #

The customer from the W.O. will display but can be over-typed.
This is a mandatory field that is used to record sales history of parts used in repairs.
The revenue history on a part used, is tracked by customer and also by item in Revenue History .

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.

TRANSFER PRODUCT

This Transfer Product option only applies to rental equipment and is only available if the product has not been assigned a Product Status Code that does not allow transfers, and if the operator has role permission as defined in the "Miscellaneous" window of Security Role Permissions .

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 TO

Enter the new location or select it from the drop-down list.

TRANSFER DATE

Accept today's date or enter the date of the inventory transfer.

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.

Finished?

Click ACCEPT to close the W.O. and create the repair, or CANCEL to abort and the W.O. remains open.

PRODUCT STATUS CODE

This prompt applies to non-bulk rental equipment only and is controlled by a flag in the Divisional Work Order Parameters.

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.

UNABLE TO UPDATE PRODUCT STATUS: If the Product Status Code cannot be changed at this time, the Product# and the Reason that the update cannot be completed are displayed.
e.g. On Contract, On Delivery

SELECT DIVISION or SELECT TAG

This prompt is triggered when the Post Internal Work Order Labor To GL feature has been activated in the Divisional Work Order Parameters for the W.O. header division, and a bulk rental product or sales part is being serviced in order to define the G/L Division for the Labor Expense posting transaction.

Bulk Rentals - click OK and select a valid tag from the Asset Tag Search window.
Sales Part - click OK and select a valid division from the Division Search window.

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.

Topic Keyword: WOWH20

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