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12We recently migrated to Business Central from Great Plains and are having an issue with how the WIP and POC cost entries are being recorded. We do not have an issue with the revenue recognition entries.
We started by recording a manual entry to reverse the prior month's WIP/POC entries and debiting the WIP Balance Sheet Accounts and crediting the COGS Expense Accounts. Sample below.
| Reverse Prior Month Costs - Manual Journal Entry | |||
| Account Type | DR | CR | |
| Asset | WIP | 100.00 | |
| Expense | COGS | 100.00 | |
We then processed the current months transactions and ran the Calculate WIP Routine. Assuming we had 10.00 in costs in the current month our system posted the following entry related to the project costs.
| Calculate WIP Routine - WIP Entry | |||
| Account Type | DR | CR | |
| Asset | WIP | 110.00 | |
| Expense | COGS | 110.00 | |
The system then posted the following entry to recognize the costs via POC.
| Calculate WIP Routine - Recognition Entry | |||
| Account Type | DR | CR | |
| Expense | COGS | 110.00 | |
| Asset | WIP | 110.00 | |
We would have expected the WIP entry to only move the current month's activity from the expense account and the recognition entry to move the full project costs but this is not what happened and we are now sitting with the prior month's costs on the balance sheet and credits in COGS.
Attached is the current setup of our project posting groups if needed. Any help would be appreciated.
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