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AE1222

Work-in-Process Inventory - Restricted

Work-in-Process Inventory - Restricted measures the amount of restricted Work-in-Process Inventory at a given time at all locations included for reporting. Restricted implies the inventory is recorded as owned, but may not be current, in good order or available for immediate use. Examples include: Products recorded in quarantaine or inspection, products recorded In Transit.

Notes

Work-in-Process Inventory - Restricted may be reported by value or volume depending on purpose. Volume-based reports may overstate the importance of inventories of low-value products. Value-based reports may understate the implications on the need for storage space or orders needed to deplete the inventory.

Valuation of WIP inventory is generally at cost of materials plus production costs (Compare to COGS). The practice of Backflushing generally eliminates or significantly reduces the value or volume of WIP Inventory.

For benchmarking purposes Work-in-Process Inventory - Restricted may be measured as a percentage of total Work-in-Process Inventory (Unrestricted + Restricted + Blocked).

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Hierarchy

IDNameLevelx
AE122Days of WIP Inventory3AE122
AE1222Work-in-Process Inventory - Restricted4AE1222

Process(es)

IDNameLevelx
M104Inspect3M104
M106Dispose3M106
M205Inspect3M205
M207Dispose3M207
M306Inspect3M306
M308Dispose3M308
M401Create Work Order3M401
M407Inspect3M407
M409Dispose3M409
Work-in-Process Inventory - Restricted Days Of WIP Inventory 51222 4 WIP, Inventory, Restricted, Supply chain, Asset, Efficiency The amount of restricted Work-in-Process Inventory at a given time at all locations included for reporting. Restricted implies the inventory is recorded as owned, but may not be current, in good order or available for immediate use