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We are moving a recently acquired company into our existing GL. We need to create a WIP account for this new companies use onl;y. Has anyone ever had two WIP accounts and if so how did you accomplish this? We are using the "new" WIP for Unbilled Hours submitted by our contractors.
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Yes, and my last posting should provide a workable option or two.
Sorry Richard......so what happens is we pay our contractors every week but we only invoice our customers monthly. House paid to contractor will sit in WIP until Invoiced to client. Does that make more sense....
There is still not a lot of detail in what you are trying to accomplish. However,.....
It sounds like when you pay contractors, rather than expensing their vouchers you direct their charges to a WIP account. Then on invoicing, matching funds are moved from WIP to COGS, I am guessing by a GL transaction.
If you use separate vendors for each "company", the vendor's purchases account can point to one WIP account. If you have a vendor that works for both divisions/companies, can you create two accounts? Otherwise, you can create a list of purchasing accounts that specify the list of WIP accounts and pick the appropriate one when vouchering the invoices.
It is neither.... we will use this to store unbilled hours for our contractors. Once Invoiced they will be removed from WIP.
Thank you for your example...that illustrates this very well.
Project WIP accounts are set in the Cost Categories. If you setup Cost Categories specific to the new company, you can specify the WIP account you want to use for that company in those Cost Categories.
Is this a Project or manufacturing situation? Yes, multiple WIP accounts can be used. I am familure with manufacturing where each inventory item has a WIP account associated with it. When you manufacture that item, the WIP account for the parent item is used. One group of items can point to one WIP account where another group of items can point to a second WIP account.
I am not a project expert but I believe each project has accounts associated in the same manner. Perhaps a Project Expert will chime in here.
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