I am starting to close old jobs that we have in our system. We have been running a COS/WIP-Capture every month so the costs of these jobs have been posted. Before I close anything I ran the Work in Progress report and noticed that there is still a balance in Cos/MFG-VAR. Then I ran the WIP Rec report for that job and it has everything posted. My thought process is that when I go to close there will be no impact on the balance sheet or P&L because everything was already posted. That was not the case. The balance that was in COS/MFG-VAR impacted the project WIP on the balance sheet, and our overhead accounts on the P&L. I am not an accountant, and was hoping someone could shed some light on what I am seeing. Thank you all!
Until you close the job Epicor is still holding out hope that the costs can go somewhere and not to the variance account. When you close the job it has no other option than MFG-VAR.
If you do not have it running I would suggest the auto complete and auto close, so it will keep jobs without large variances up to date and keep the entries in at least the current period.
Once you get the parameters setup, the auto closing process is quite helpful. If all goes well, it should close the vast majority of your jobs for you and you then only have to deal with the exceptions. As Greg stated above, getting this on a regular schedule should help a a lot. You’ll likely need to tweak the canned Auto Job Closing Exception dashboard as it’s close to useful, but not quite (IMO).
At a minimum, this should be done prior to each month end. Dropping transactions from prior periods into the current one tends to frustrate the accounting folks and understandably so.