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Shannon83
June 16, 2021
Question

Prior Year WIP Balance

  • June 16, 2021
  • 2 replies
  • 0 views

Hello,

I'm super new to quick books, so please be patient. I have recently taken over an admin position, and am learning as I go.

I'll explain our "process" and then explain where I need some help.

I enter the time sheet info - > I use sales receipts to assign costs to jobs and the amounts go to WIP - > and then I invoice, taking it out of WIP. 

We have an account that had a WIP balance from 2020. It is a piece-work account, so I need to "write down" the WIP from last year. For the current year I usually use the Reduced fees (discount item) however, being a different year, I assume that it would be different? 

Any advice is appreciated. And if I didn't explain that well enough, please let me know so that I can clarify. Thanks in advance

2 replies

L
LauraAB
June 16, 2021

Hello Shannon83,

 

Welcome to using QuickBooks Desktop! I know taking over a set of books can be a challenge, especially when it's coupled with using a program that you're not familiar with either. Don't worry, my goal is to get you the direction you're looking for working with the program and making sure the books stay balanced.

 

Given what you've described, it sounds like you could use the advice of someone with an accounting background since you're asking about what items are appropriate to use when and how to go about the tasks you're trying to accomplish from that perspective. As a member of the technical support team, I can't offer that to you, however, I can point you in the direction of those who can.

 

At QuickBooks, we know how much of an asset working with an accountant is, which is why we've got a list of QuickBooks-certified accountants that you can review and choose from. You can find that list on our Find an Accountant page, which gives you the chance to search by postal code or city name to find pros near you. Even if you are an accountant yourself, this may be a good opportunity to see if there's anyone that can give you some guidance on working with these kinds of transactions in the program.

 

In terms of QuickBooks Desktop discount items, you should be able to continue to use the same item without issue provided it has the same calculations you're looking to use now. If it doesn't or you'd like to create another one, you can do so by going to the Lists menu and choosing Item List. There, you'll be able to see your created items as well as the option to add others.

 

Keep an eye out for responses from other QuickBooks users here on this thread as well. There are a number of smart folks in this forum who can lend a hand. If you're ever in doubt with the advice you've received, however, it doesn't hurt to get a second opinion.

 

Wishing you the best with this and with getting started in QuickBooks Desktop! :)

R
Rochelley
December 6, 2021

Hello @Shannon83 ,

 

Wouldn't the end of year WIP have been reduced when those amounts were invoiced, presumably in the current year?  Or do you have work that was completed or at some level of completion at year-end that still hasn't been invoiced?  Sorry, I'm an old-school accountant who figures everything out in my head as far as what needs to happen in the accounts, and then I do what I have to do to make QB do it, because of all it's special forms rather than just doing GJE's.

 

If you are tracking WIP on sales, then in my mind, this is what has to happen.

 

End of accounting period, portion of sales that has been completed but not invoiced:

DR WIP

CR Sales

 

Upon completion of the project:

CR WIP

DR A/R

 

If tracking WIP on costs:

DR WIP

CR COGS

 

Upon completion of project:

CR WIP

DR A/P

 

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