Hello,
I am not sure why you would be asked to close all PO's at all. Work in Process (WIP) G/L Account accumulates the costs that are incurred during production in the accounting period. The WIP account is debited for the cost of raw materials that are transferred from the raw materials warehouse, the cost of direct labor performed, and the manufacturing overhead costs that are incurred.
The WIP account is credited for the total manufacturing cost of units that are completed in the factory and transferred to the finished goods warehouse. So in summary:
For a typical manufacturing company, they would have the following accounts:
Raw material
WIP
FG
For Dynamics NAV, we typically utilize the following accounts:
Raw material
WIP
WIP (NAV)
Finished Goods
When you post a consumption in a Released Production order for your WIP items, it will hit the following accounts:
– Raw Material
+ WIP (NAV)
Then when you output the production order and finish the production order, it will hit the following accounts:
– WIP (NAV)
+ WIP
Similarly, when you are producing an Item, the accounts that will be affected will be:
When you consume:
– WIP
+ WIP (NAV)
When you Output:
– WIP (NAV)
+ Finished Goods
Again, if I am posting Output and moving WIP to Finished Goods, this is recorded in the month the Output is transacted. The WIP is still WIP until I create the Finished Good.
Again, not sure why you have to do what you do. I have never heard of this in my 20 years doing NAV/BC.
Thanks,
Steve
