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ThanksInAdvance
ThanksInAdvance
September 15, 2024
Question

Closing out WIP in WIP Account

  • September 15, 2024
  • 1 reply
  • 0 views

Hello!

 

I am using WIP for job tracking.  When I close WIP (by closing out the "item" and transfer into "COGS) this zeros out the WIP report, but the WIP Account does not show any deductions.  I suppose this makes sense because "closing WIP" is not touching the WIP account, so what do I need to be doing to make sure that when i create a "Bill" to close out WIP that is also reduces the WIP account? 

 

Thank you so much!

 

1 reply

ThanksInAdvance
ThanksInAdvanceAuthor
September 15, 2024

@qbteachmt  are you available to weigh in?

R
RogelioL
September 15, 2024

Let me join this thread and explain why there's no deduction in your Work-In-Progress (WIP) account.

 

To start, the Bill you've generated will impact the Accounts Payable, not your WIP account directly. The bill will depend on the Category or Account associated with the items you've selected.

 

If you want to transfer or reduce the WIP account, consider using a Journal Entry (JE). When using JE, I suggest seeking assistance from an accountant to set this up properly. 

 

The Community is always open if you have further concerns about closing out your WIP account. Keep safe.

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