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WIP Account

  • 1.  WIP Account

    Posted Nov 02, 2020 12:13 PM
    Hi all,

    So we were going through our WIP account and notice that some of the Work Order that are closed/finished are not being washed out, but some are being washed out.  It shows that we still have some value in there even though the Work Order are finished. Shouldn't the WIP account only show the current Work Order that are still open and in progress?  Is there a way to correct the WIP account to wash itself out for the closed/finished work order?  Our WIP is currently growing slowing for the ones that doesn't wash out.

    Any suggestion or help with this would be appreciated.

    Thanks,

    ------------------------------
    Yeng Thao
    IS Manager
    Command Tooling Systems
    Ramsey MN
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    Digital Acceleration Binge Day.  January 28th 2021 | 11:00 AM - 2:00 PM EST


  • 2.  RE: WIP Account

    NAVUG ALL STAR
    Posted Dec 11, 2020 01:20 PM
    Yeng,

    I use the Inventory - G/L Reconciliation page to try and resolve this. Here are a few steps to think about:

    I look into my chart of accounts to see my inventory accounts and my WIP account and their balances. My WIP account for finished goods represents the amount of production inventory being manufactured right now. In my example above, I see my


    Usually, I would go into my production WIP, in report and analysis, I can enter an end date and when I view this report, I can see all my values posted on my item ledger entries, in my production and my value posted to G/L. My report shows a different value, which why the GL and and WIP ILE are out of balance.

    So the math in my example shows a GL at $176 and a WIP at $112, a difference of $63, which is what appear in the Reconcile page above.

    So the Inventory to G/L Reconcile page calculates the WIP and differences between GL and ILE. I see, there's a difference of 63,000 and no matter what I do, this is difficult to get rid of or qualify. If I finished all production orders and I invoiced all of my outstanding purchase orders, this will be zero. But the reason it occurs, in the first place, is because of this, if I go into my inventory setup I see, that I didn't check, 'Expected Cost Posting to G/L'. This functionality will record transactions that are not fully completed to keep the ILE and GL in-sync (accruals). 

    So, if I place this checkmark, on the field, it tells me to run the cost posting to G/L and synchronize. I run the report and both my values are now the same.
    Hope this helps. Note that I will check this field for Manufacturers to accomplish WIP reconciliation and Shipped Not Invoiced/Received Not Invoiced accruals.

    Thanks and Stay Safe,
    Steve



    ------------------------------
    Steven Chinsky
    Manager
    Wipfli
    Mansfield MA
    NAVUG/BC Programming Committee Member
    NAVUG All-Star, Granite Award Recipient, MCP, DCMP
    ------------------------------

    Digital Acceleration Binge Day.  January 28th 2021 | 11:00 AM - 2:00 PM EST


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