Jobs - WIP and Revenue Recognition to use original Rev Account

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Posted on by Samantha73

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Hi Guys

When an invoice is created for planning line with GL account for revenue say 4000, invoice entry will be:

CR 4000

DR Debtors

Now when we do the WIP recognition it will be:

DR Applied sales WIP

CR Job WIP invoiced sales acc

With these two sets of entries P&L as a whole is correct, however the issue is we have 2 different accounts for CR and DR entry, and if the original invoice amount is $100 we get something like below in P&L:

CR Acc 4000 $100

DR Applied Sales WIP $100

Is there any way to set WIP posting to go to the original invoice sale account (DR 4000 account is above example)? Sales account can vary and multiple accounts are used. How do others structure their chart with above sort of WIP calculations?

Thanks

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Samantha,

Job posting is defined by the Job Posting Group setup on the job and the planning lines default to that Job Posting Group. However, as you create tasks you can override the default and select a posting group that is more appropriate. Job Posting Groups define:

Account field	Description
Code	A code for the posting group. You can enter up to 10 characters, including spaces.
WIP Costs Account	The WIP account for the calculated cost of the job WIP, which is a balance sheet capital asset account.
WIP Accrued Costs Account	An account for the Cost Value or Cost of Sales method of WIP calculation, which is a balance sheet accrued expense liability account. This will be posted to when the WIP adjustment requires that usage costs posted to the income statement be increased.
Job Costs Applied Account	A balancing account to the WIP Costs Account, which is a contra for a negative expense account.
Item Costs Applied Account	A balancing account to the WIP Costs Account, which is a contra for a negative expense account.
Resource Costs Applied Account	A balancing account to the WIP Costs Account, which is a contra for a negative expense account.
Costs Applied Account	A balancing account to the WIP Costs Account, which is a contra for a negative expense account.
Job Costs Adjustment Account	The balancing account to the WIP Accrued Costs account, which is an expense account.
G/L Expense Acc. (Budget)	The sales account that will be used for general ledger expenses in job tasks with this posting group. If left empty, the general ledger account entered on the job planning line is used.
WIP Accrued Sales Account	The WIP account for the calculated sales value of the WIP, which is a balance sheet Accrued Revenue account. This is posted to when the WIP adjustment requires the recognized revenue to be increased.
WIP Invoiced Sales Account	The account for the invoiced sales value of the WIP that is not able to be recognized. It is a balance sheet Unearned Revenue account.
Job Sales Applied Account	The balancing account to the WIP Invoiced Sales account, which is a contra income account.
Job Sales Adjustment Account	The balancing account to the WIP Job Sales Account, which is an income account.
Recognized Costs Account	The expense account that contains the recognized costs for the job. It is a debit expense account ordinarily.
Recognized Sales Account	The income account that contains the recognized income for the job. It is a credit income account ordinarily.

So if you create a Job Posting Group whereby you want the Debit and Credit to post differently than your first entry, create one that defines the correct GL Accounts for the entry being posted on the Task Line.

Hope this helps.

Thanks,

Steve