Costing accounts for the manufactured item are setup to designate between WIP-Material and WIP-Labor. Any advice?
Upon MO Receipt Posting I get:
debit: Inventory - Finished Goods (for materials + labor)
credit: WIP-Material (for materials + labor)
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Hello! I just spoke with my consultant and figured out the issue. I want to post here for reference.
I'm receiving against an MO- all labor, machine and materials backflushed. When I post the receipt, the Distribution Breakdown - Inventory Control that prints shows a debit to Inventory-Finished Goods, credit to WIP-Material.
When I check the GL Posting Journal, labor and materials are split between WIP-Labor and WIP-Materials.
We're still not sure why it's showing this, but at least we know the proper entries are hitting the GL.
Hi Alicia,
Can you please explain what is the issue in detail. Are you happy with debit & credit once you received MO
Hi Trevor, thanks for the response! I did as you said and WIP-Labor is assigned to the "WIP-Labor" Account... Any other suggestions?
Sounds like you don't have the labor account assigned to the item number. Go to Cards >> Inventory >> Item, enter your finished goods item number, then click on the accounts button. Two windows should pop up; you'll want the one called "Item Account Maintenance - Costing." Scroll down and see what is entered for WIP - Labor. Change it if necessary. -Trevor
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