We have a new controller (aka entire accounting department) and when she was taught to run the Capture COS/WIP process, they didn’t realize that the previous person had the “Post Cost of Sales/MFG Variance” box checked by default. She has been running it since mid-October without that box.
We panicked when we saw all the transactions still showing as unposted but then looking at the financial statements, it looks like everything is posted.
The Post to GL box is checked. What difference does the Post COS box make?
The only other best practice she was told is to put an end date of 2 days ago to allow corrections to labor transactions.
The Outdated Transactions checkbox was also defaulted on the previous user and hasn’t been run since. Any best practices for this and the apply date would also be greatly appreciated.
I had a friend troll through the documentation for 2023.1, So take it on face value sometimes my friend can be a bit creative.
The “Post Cost of Sales/MFG Variance” check box in the Capture COS/WIP Activity process controls whether the application posts the calculated cost of sales and manufacturing variance figures against the jobs1.
Here’s a breakdown:
• When you select the “Post Cost of Sales/MFG Variance” check box, COS and Variance transactions are posted to the GL only after they have been posted to the jobs1.
• If you select this check box along with the “Include Project Billing Costs from Unrecognized Revenues” check box, the labor costs will be recognized as Cost of Sales (COS) even if you do not execute the Capture Revenue Recognition process2. This applies to projects invoiced based on Cost Plus2.
• If Capture Revenue Recognition is executed after invoicing, followed by the Capture WIP/COS Activity with the “Post COS/MFG Variance” check box selected, then labor costs will be recognized as COS regardless of whether you select or clear the “Include Project Billing Costs from Unrecognized Revenues” check box3.
• If you select the “Post to General Ledger” check box but do not select the “Post Cost of Sales/MFG Variance” check box, most transactions will still be posted to GL, except for shipments from WIP (MFG-CUS) and variances (MFG-VAR)1.
Further detail can be found in the Kinetic Inventory Management Users Guide.
pp 212 ish Running the Capture COS/WIP Activity Process
Thanks Simon. You must have a better friend than me. I had found bits and pieces of that but was missing the what happens when the box isn’t checked part. Appreciate the help.