If you need to post End of Month WIP amounts, first, go to the WIP Aging Report.
- In Production menu, navigate to Orders and choose WIP Aging Report from the drop-down menu.
- Then set the ‘Show Totals’ checkbox on that report and enter opening date in Pick date field.
- Click Submit. You will find WIP totals for Materials and Labor at the bottom of the page.
To post the End of Month WIP amounts in a ledger entry, you must first create the WIP-Labor and WIP-Materials GL Account(s).
- To set them up, navigate to Accounting and Chart/Ledger, choosing Account List from the drop-down menu.
- Then click the blue Create Account button and fill out the Account Parent (Other Current Assets), Account Name and Account Number fields.
- Click Create button.
- Repeat the process to set up another WIP GL account, i.e. one for WIP-Labor & one for WIP-Materials.
You’ll then make a manual ledger entry dated the last day of the month and reversal on the 1 of following month.
- Navigate to Accounting and Chart/Ledger, choosing Ledger from the drop-down menu.
- Now click the blue Add Entry button.
- Enter an Entry Name and click the Transaction Date to change date to the last day of the previous month.
- Now enter the WIP Materials GL account to debit for the total on the WIP report.
- Next Enter Notes or repeat Entry Name.
- Then enter WIP Materials Debit amount from the WIP report for materials.
- Now, choose the WIP Labor account and enter Notes or repeat Entry Name.
- Enter the WIP Labor Debit amount from the Aging Report and click the blue Add Split button.
- Next enter the Current Asset Inventory GL Account to Credit for the WIP Materials total, entering Notes or repeat Entry Name, then again clicking the blue Add Split button.
- Now, enter the COGS Labor GL account and enter Notes or repeat Entry Name.
- Enter the WIP labor Credit amount from the WIP report for Labor
- Next click the blue Reverse Entry? button for the option to reverse the end of month WIP entry on the first day of the following month.
- In the new screen you will see a date box to change the Reverse On date to the first of the following month.
- Then click the red Reverse Entry? button to complete.
- You can view the ledger impact of the WIP entry by clicking on the Summary View link in the upper left menu.
- The ledger impact is Materials amount DR to WIP Materials, CR Inventory Labor amount DR WIP Labor, CR COGS Labor.
- You can view the ledger impact of the reversing entry by clicking the blue Entry link on the bottom right.
- The ledger impact of the reversal Credits the WIP Materials and WIP Labor accounts, Debits Inventory and COGS Labor accounts, and completes the process.