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I posted a job WIP entries with the WIP calculation method "COST VALUE" method and i have calculated the WIP with "Calculate WIP" batch job with the job status type "Open".
In those entries there are two types of entries that are created with the entry type "Applied Costs" and "Applied Sales".
Can someone explain to me why those WIP entries are created for the job.
Thanks and Warm Regards,
Denys De Andrado.
Lets review WIP Cost Value... The Cost Value method calculates the WIP amount as the contract value of the posted usage costs less than an estimate of the invoiced contract costs. Using this method means that a job’s revenue and profit (or loss) will be recognized when the job is invoiced to the customer. If the WIP amount is positive, the WIP will be posted to an asset account. If the WIP amount is negative, the amount will be posted to a liability account as an accrued expense. The WIP amounts for the Cost Value method are calculated with the following formula:
Job WIP Cockpit look:
Now the G/L Accounts used for WIP Posting and relate to Applied and Recognized (see the column headings:
There are a number of different WIP Methods provided as standard and you can also create customized WIP methods. They basically divide into two types - where costs and revenues are recognized when the job is complete with everything being posted to WIP until then and where either costs or revenues are recognized as the job progresses and the either the costs or revenues are adjusted depending on the progress of the job. Different accounts will be used depending on the the WIP Method set for the job. As their name suggests, the Recognized Costs and Sales accounts will be used for costs and sales once they have been recognized which is the final step in the job costing process. These accounts should always be Income Statement accounts. The WIP account is used to record any WIP while the job is in progress with the balancing account being one of the various Applied accounts. The WIP accounts should always be Balance Sheet accounts. Once you have run the Calculate and Post WIP to G/L batch jobs you may need to reconcile the balances on your WIP G/L accounts with the balances held by job. The easiest way to do this is by running the the Job WIP Cockpit page.
Hope this help.
Thanks you soo much for the information.
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