Fintra Feature
Work orders that post real cost, not estimates
Work Order WO-0042
Example figures- STATUS
- In process
- 100 units
- WIP BALANCE
- $41,200
- material+labor+OH
- STD COST
- $63.10
- per unit
- Materials issued (BOM explosion)
- $28,000
- Labor applied: 210 hrs × $20
- $4,200
- Overhead applied
- $9,000
The work-order lifecycle
A work order is the container that costs a production run. Fintra moves it through a clear state machine (planned, released, in-process, completed, closed) and each cost event posts a real entry, so at every point you know exactly what the run has cost.
From planned to closed
Release
Move the order from planned to released; it’s ready to consume materials.
Issue materials
DR WIP / CR Raw Materials at cost; if no lines are given and the item has a BOM, Fintra explodes the direct components.
Apply labor and overhead
DR WIP / CR Wages Payable for hours × rate, and DR WIP / CR MOH Applied for overhead: derived from the BOM rate if no amount is given.
Complete
Relieve accumulated WIP to finished goods; standard-cost items book at standard with the residual to production variance.
Close
Finalize the order once complete.
BOM-driven material issue
You can issue specific material lines, or let the work order explode its BOM to determine the direct components for the build quantity. Either way, issuing materials accumulates the material cost on the order and debits WIP.
Completion and costing method
| Costing method | Finished goods booked at | Residual |
|---|---|---|
| Standard | Standard cost × quantity | Production variance |
| Weighted average / FIFO | Total accumulated WIP | None (unit = total ÷ qty) |
Why real work-order costing matters
Estimating production cost in a spreadsheet and posting a lump sum to inventory hides where money actually went. Work-order costing puts material, labor, and overhead into WIP as they’re consumed and relieves them on completion, so your inventory value and margins reflect real production, not a monthly plug.
Questions people ask
What is work order costing?
Work order costing accumulates the material, labor, and overhead of a production run on a work order, posting each as a real journal entry to work-in-process, then relieving that cost to finished goods on completion. It gives an accurate, auditable cost per production run rather than an estimate.
What are the stages of a work order in Fintra?
A work order moves through planned, released, in-process, completed, and closed. Releasing readies it for material issue; issuing materials, applying labor, and applying overhead build the WIP balance; completing relieves WIP to finished goods; and closing finalizes the order.
How are materials issued to a work order?
You can issue specific material lines, or let the work order explode its bill of materials to determine the direct components needed for the build quantity. Issuing materials debits work-in-process and credits raw materials at cost, accumulating material cost on the order.
How is a completed work order costed?
For standard-cost items, finished goods are booked at standard cost times quantity, with the residual WIP posted to a production variance. For weighted-average or FIFO items, finished goods take the total accumulated WIP, with a unit cost of total divided by quantity completed.
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Cost every production run
Talk to us: we will map it to your stack. Run a work order and watch cost flow into the ledger.