(6.1) WIP - Accounting Question

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1
Thank you both for your response - it gives us some good ideas!
Julie

----- Original Message -----
From: al2trace
To: vantage@yahoogroups.com
Sent: Thursday, May 01, 2008 5:25 PM
Subject: [Vantage] Re: (6.1) WIP - Accounting Question


WIP can be negative when standard costs per piece are higher than the
actual costs incurred. They can also be negative if too many parts
are received to stock or shipped from the job.

One of our companies will have several jobs with negative WIP every
month because they have produced finished goods on a job but have not
moved raw material to the job in Vantage. Reviewing the stock status
report shows that the raw material is overstated by the amount that
WIP is understated.

--- In vantage@yahoogroups.com, "dlsomers" <dlsomers@...> wrote:
>
> Julie,
>
> We had this same problem when we closed jobs in April as of March
> 31st and didn't realize that labor had hit those jobs in April
prior
> to us closing.
>
> We've learned to check transaction dates whenever we see something
> like that and make sure that no transactions occur after closing.
> The inventory/WIP reconciliation report is very helpful for
checking
> this as you can run on specific jobs and time periods.
>
> Lois
> Intl. Cybernetics Corp.
>
>
> --- In vantage@yahoogroups.com, "Julie Lehmann" <jlehmann@> wrote:
> >
> > Hi Group:
> > I am looking for guidance or advice regarding the WIP report,
which
> we print out and use at the end of each quarter. For 3/31/08 the
> report shows a negative value for Labor and Burden. I'm only part
> bean-counter, so I don't work with it unless there are questions or
> problems. We use Standard costing, and I understand where the
> numbers come from for this report, but thinking about it logically,
> if we have even one job out on the floor in WIP - we could not have
a
> negative value for labor or burden. Strictly speaking, if we want
to
> know the $ value of WIP - this report does not give us the correct
> value.
> > Have we misunderstood the focus or purpose of this report? Any
> help or advice or comments would be appreciated. Thanks!
> >
> > Julie
> > Mercury Minnesota Inc.
> >
> >
> > [Non-text portions of this message have been removed]
> >
>





[Non-text portions of this message have been removed]
2
Hi Group:
I am looking for guidance or advice regarding the WIP report, which we print out and use at the end of each quarter. For 3/31/08 the report shows a negative value for Labor and Burden. I'm only part bean-counter, so I don't work with it unless there are questions or problems. We use Standard costing, and I understand where the numbers come from for this report, but thinking about it logically, if we have even one job out on the floor in WIP - we could not have a negative value for labor or burden. Strictly speaking, if we want to know the $ value of WIP - this report does not give us the correct value.
Have we misunderstood the focus or purpose of this report? Any help or advice or comments would be appreciated. Thanks!

Julie
Mercury Minnesota Inc.


[Non-text portions of this message have been removed]
3
Julie,

We had this same problem when we closed jobs in April as of March
31st and didn't realize that labor had hit those jobs in April prior
to us closing.

We've learned to check transaction dates whenever we see something
like that and make sure that no transactions occur after closing.
The inventory/WIP reconciliation report is very helpful for checking
this as you can run on specific jobs and time periods.

Lois
Intl. Cybernetics Corp.


--- In vantage@yahoogroups.com, "Julie Lehmann" <jlehmann@...> wrote:
>
> Hi Group:
> I am looking for guidance or advice regarding the WIP report, which
we print out and use at the end of each quarter. For 3/31/08 the
report shows a negative value for Labor and Burden. I'm only part
bean-counter, so I don't work with it unless there are questions or
problems. We use Standard costing, and I understand where the
numbers come from for this report, but thinking about it logically,
if we have even one job out on the floor in WIP - we could not have a
negative value for labor or burden. Strictly speaking, if we want to
know the $ value of WIP - this report does not give us the correct
value.
> Have we misunderstood the focus or purpose of this report? Any
help or advice or comments would be appreciated. Thanks!
>
> Julie
> Mercury Minnesota Inc.
>
>
> [Non-text portions of this message have been removed]
>
4
WIP can be negative when standard costs per piece are higher than the
actual costs incurred. They can also be negative if too many parts
are received to stock or shipped from the job.

One of our companies will have several jobs with negative WIP every
month because they have produced finished goods on a job but have not
moved raw material to the job in Vantage. Reviewing the stock status
report shows that the raw material is overstated by the amount that
WIP is understated.

--- In vantage@yahoogroups.com, "dlsomers" <dlsomers@...> wrote:
>
> Julie,
>
> We had this same problem when we closed jobs in April as of March
> 31st and didn't realize that labor had hit those jobs in April
prior
> to us closing.
>
> We've learned to check transaction dates whenever we see something
> like that and make sure that no transactions occur after closing.
> The inventory/WIP reconciliation report is very helpful for
checking
> this as you can run on specific jobs and time periods.
>
> Lois
> Intl. Cybernetics Corp.
>
>
> --- In vantage@yahoogroups.com, "Julie Lehmann" <jlehmann@> wrote:
> >
> > Hi Group:
> > I am looking for guidance or advice regarding the WIP report,
which
> we print out and use at the end of each quarter. For 3/31/08 the
> report shows a negative value for Labor and Burden. I'm only part
> bean-counter, so I don't work with it unless there are questions or
> problems. We use Standard costing, and I understand where the
> numbers come from for this report, but thinking about it logically,
> if we have even one job out on the floor in WIP - we could not have
a
> negative value for labor or burden. Strictly speaking, if we want
to
> know the $ value of WIP - this report does not give us the correct
> value.
> > Have we misunderstood the focus or purpose of this report? Any
> help or advice or comments would be appreciated. Thanks!
> >
> > Julie
> > Mercury Minnesota Inc.
> >
> >
> > [Non-text portions of this message have been removed]
> >
>