Is it possible to override the default WIP account in a production order when using a labor transaction? I need to hit a COGS for shop labor GL and not a manufactured products/material GL account. Reason being, the GL account for labor is in the account group for a labor line in the project cost budget. The default WIP is linked to the the materials line item in the cost budget. So I am having to post an extra project transaction that reclasses from materials line to labor. I would like to avoid this if possible. If there is a better way to get hours/dollars into production orders and accomplish the same, I’m open to that as well. I feel like it shouldn’t be this hard and I’m fighting the system.
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Override WIP Account in Production Order in Labor Transaction
Best answer by dgodsill97
It sounds like you want to specify the labor accrual account and not the WIP Account. The Labor code is used to specify the labor offset account which is usually a contra expense account or a liability accounts. The labor accrual account defaults from the shift line on the Work Center but it can be overridden on the labor transaction.
If you need to use a different WIP account for a specific order, the supported approach is to update the WIP Account/Subaccount fields on the Production Order Maintenance form (AM201500) when the order is in Planned status or by putting the production order On Hold when it is in Released status. Labor and material transactions will then post to that updated account. There is no native way to override the WIP account for the labor transaction level, as labor transactions inherit the account directly from the production order.
There is an existing Community Idea requesting separate or controllable WIP accounts by labor/material/overhead, which aligns closely with your scenario. You may vote and provide the use case in the community idea : https://community.acumatica.com/ideas/control-accounts-extend-functionality-to-manufacturing-module-to-control-wip-accounts-separate-wip-by-labor-material-fovh-vovh-861
that would be nice, however, I have multiple labor GL accounts (i.e. electrical engineering, mechanical, etc.) that make it difficult to do that approach of changing the production order. plus, I am uploading labor across multiple production orders at one time; i suppose in import scenario can change it and then change it back but that sounds like it would create issues. Thank you for the link. it just seems like importing direct labor vs. direct material and telling it what GL accounts you want should be easier….
+3Could you set the rate to zero so no costs, but only time is captured on the production orders - and then capture your labor cost to the project?
Could you set the rate to zero so no costs, but only time is captured on the production orders - and then capture your labor cost to the project?
Unfortunately, I need both cost and hours to go into the production order. Thank you for the suggestion.
Hi
+6It sounds like you want to specify the labor accrual account and not the WIP Account. The Labor code is used to specify the labor offset account which is usually a contra expense account or a liability accounts. The labor accrual account defaults from the shift line on the Work Center but it can be overridden on the labor transaction.
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