Can any one help to understand How to Reconcile WIP Report with WIP GL Balance
Solved
Reconciling WIP Report with WIP GL
Best answer by aiwan
Hi
We had problems navigating this too, this may be common info for you but the WIP balance is processed to WIP variances upon closure of the production order, and we find it is the ‘saving’/’cost’ based on the lot/serial nbr price of material and the labour costs for ‘batch manufacturing’, which can be observed in the difference between your WIP total and Mfg to Inventory on the Work in Process report.
Have you thought of creating a report whihc is based off the AMProdEvnt Table? this could allow you to ‘time-travel’ back to when the production order was still WIP.
Hope this helps,
Aleks
Did anyone ever resolve this issue? The problem I see when trying to reconcile the MFG WIP report (Work in Process) to the GL is that you cannot back date or use a cutoff date on the Work in Process report. I’m trying to reconcile the WIP to the GL but cannot find a starting point where historically the two went out of balance.
AI was used to create this answer
To reconcile the Manufacturing Work in Process (WIP) Report with the WIP General Ledger (GL) Balance in Acumatica ERP, follow these steps:
1. Establish a Starting Point
- Identify the last period where the WIP Report and the WIP GL were in sync.
- If historical records are unavailable, use the earliest available period as a reference.
2. Compare Transactions for Mismatches
- Run the WIP Report: Extract detailed WIP transactions for a given period.
- Run the GL Detail Report: Filter the WIP GL account for the same period.
- Identify Timing Differences: WIP postings might occur after the transaction date due to processing delays.
3. Adjust for Cutoff Issues
- Since the WIP Report does not support backdating, compare month-end snapshots of WIP balances against the GL for a specific period.
- Validate that all transactions (labor, material, overhead, and adjustments) impacting WIP were properly posted in both the subledger and GL.
4. Identify and Correct Discrepancies
- Unposted or Misposted Transactions: Ensure that all relevant transactions have been posted in both the Manufacturing module and the GL.
- Journal Entries Directly in the GL: If manual journal entries were made in the WIP GL account without corresponding manufacturing transactions, they may cause discrepancies.
- Revaluation and Adjustments: If cost revaluations or adjustments were made in the GL without updating the WIP Report, adjust accordingly.
5. Implement Regular Reconciliation Procedures
- Establish a routine to reconcile WIP at the end of each period.
- Ensure that WIP-related transactions (labor, materials, and overhead costs) are correctly captured in both the subledger and the GL.
- Consider exporting data to Excel for easier comparison.
By following these steps, you can systematically reconcile the WIP Report with the WIP GL Balance and maintain accurate financial records.
Hi
We had problems navigating this too, this may be common info for you but the WIP balance is processed to WIP variances upon closure of the production order, and we find it is the ‘saving’/’cost’ based on the lot/serial nbr price of material and the labour costs for ‘batch manufacturing’, which can be observed in the difference between your WIP total and Mfg to Inventory on the Work in Process report.
Have you thought of creating a report whihc is based off the AMProdEvnt Table? this could allow you to ‘time-travel’ back to when the production order was still WIP.
Hope this helps,
Aleks
https://www.linkedin.com/in/aleks-iwan-mbcs-03705b240/
1 person likes this
Reply
Enter your E-mail address. We'll send you an e-mail with instructions to reset your password.