Gain Greater Control Over
Resources and Costing

NetSuite WIPand Routings

Enabling NetSuite’s WIP and Routings capabilities
gives companies the ability to define a routing for themanufacturing process, the resources needed to complete
the process, and the expected time and cost required.
Routings also provide the basis for the infinite capacity
scheduling engine that can help identify which resources
are being over- or under-utilised. Finally, capturing the costof materials consumed during the manufacturing processcreates a complete picture of the process costs before it isfinalised and committed to the GL.

Key Functionality• Work centre management• Accurate costing• Infinite capacity scheduling• Drag-and-Drop GANTT style scheduler• Track Work In Process costs

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Process flow

AssemblyItem

Work OrderWIP Issue

Assembly ItemIn NetSuite, an item that is manufactured and consumes
other components as part of that process is called an
Assembly Item and is easily defined through the New
Items menu. Assembly Items can optionally beassociated with lot numbers or serialised. Selecting oneof these options will ensure that full traceability is strictly
maintained for products that require it.

Location Settings
One of the unique features of NetSuite is that thesystem can be set up to manufacture the same productin different ways at each location. Work in process androuting can be assigned down to the individual location© Oracle | Terms of Use and Privacy

CompleteCloselevel. For example, it is possible to choose to perform alight assembly process and backflush the materials in
one location, but define a routing and collect labour costs
at another.

Manufacturing Cost Templates
The manufacturing cost template defines the direct andindirect costs associated with an operation’s routing,along with the accounts that these costs should beposted to. Every time an operation is completed,
NetSuite uses the associated cost template to provide
baseline form for costing the product, while still
maintaining flexibility.

Page 2

Work Centre Management

Production Routing

Before defining the manufacturing process using routings,
it’s necessary to set up the work centres that the routing
will use. Each work centre can represent a machine,
person, work cell, or department that is involved in themanufacturing process. This list of work centres is an
integral component of the real-time scheduling engine.

Once the work centre and cost templates have been
defined, the production routings can be set up torepresent every step that a product goes through, theexpected set-up and run times, the associated work
centres, and the cost templates that should be used. This
also facilitates the real-time scheduling process, which
can be defaulted to forward or backward and also overridden on a case by case basis.

© Oracle | Terms of Use and Privacy

Page 3Work OrderWork Order Traveler/Dispatch List

In NetSuite, creating a Work Order is actually an optional
step in the manufacturing process; however, if a business
requires the ability to create a schedule and communicate
to production what needs to be made, when it should bemade and the components to use in the process, or if
you sell a configurable product where there are featuresand options, then creating a work order is a critical partof the process and is the starting point of implementing aproduction control system.

The Work Order Traveler is a document that is printedand handed over to production to communicate theproduction plan, routing steps, and schedule. It can also
be used to communicate back how much time each
operation took and the amounts of raw material actuallyconsumed compared to what was anticipated.
The Dispatch List, on the other hand, provides a detailed
list of materials that are required for a work order.

Actual Production Dates are automatically calculated bydefault for related work order transactions. This enables
you to track actual production dates to better assess yourproduction plans, identify problems, optimise productionruns, and make data-driven decisions.

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Page 4

Inventory Commitment

WIP Issue

Creating a Work Order activates NetSuite’s ability toautomatically commit inventory to production when thework order is created to provide an accurate, real-timeview of inventory status.

The WIP Issue transaction manually issues materials tothe Work Order — and into WIP — as they are consumed.
This is especially valuable for manufacturing productsthat take longer to complete and have several workorders open over month end.

Work Order Management
The WIP and Routings module also adds statuses tothe Work Order itself, allowing for a more finite levelof control over when and how work orders are
released to production as well as clearer visibility on
production status.

Work Order Completion• Open Planned• Recording scrap• Firm Planned• Reporting completed products• Released

NetSuite has a two-step closing process for work orders,with the completion being the first step. This is typicallydone by someone in production and indicates whena product is actually completed and available to beadded to inventory.

• In-Process• Complete• Closed

The completion transaction serves several purposes:• Recording labour against an operation• Issuing materials

Mass update screens are available to enable production
controllers to keep on top of the statuses and make masschanges based on a wide range of criteria, including
customer, item, and due dates. These statuses can also
be updated using the workflow engine for a more
automated process.

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Page 5

Work Order Close
The second part of the process is the work order close.
This allows cost accounting, production, and financeteams to work together and preview the costs that havebeen applied to each Work Order before committing thecosts to the GL.

To find out more, contact NetSuite on
Infoapac_WW@oracle.com

Australia
Phone: 1800 638 784
www.netsuite.com.au

Hong Kong
Phone: +852 3655 1949
www.netsuite.com.hkJapan
Phone: +81 3 6834 4888
www.netsuite.co.jp

Singapore
Phone: +65 6263 1300
www.netsuite.com.sg

China
Phone: 400 610 6668
www.netsuite.cn

Philippines
Phone: +632 8295 9022

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India
Phone: +9180 4029 8789
Phone: +9180 4029 8809
www.netsuite.com/in