We have an ongoing issue where the WIP balance of our Work in Process Report for any given month doesn’t balance our GL Work in Progress account.
We have a separate GL for Manufacturing and Service and 2 different report styles as well.
The discrepancy fluctuates each month and has been negative some months.
I am trying to find a way to pull up the GL transactions based on Job number that I can reconcile to what is still open on the WIP report.
As per below we are $10,039.36 more on our GL for the end of July.
GL account closing balance $79,639.66
Work in Process WIP balance $69,600.30
I have attached the selections I make on the Work in Process report.
I assume you are referring to the GL accounts in your first question - if so, no we don’t spilt via labour, materials as you suggest.
We do however split via Manufacturing jobs & Service jobs on the GL.
Yes, the net change does match the Inventory/WIP reconciliation.
Splitting the GL accounts will help identify the problem area when you are out of balance. Having GL sub accounts for each of the labor, burden, material and subcontract sections of WIP is always a good idea.
Since the net change balances, I would say the problem is in a prior month. I would bring it back into balance with a journal entry and expense it off to COS.
Thank you for the suggestion on splitting the accounts, i will submit this to the finance team and see if we can get that implemented.
We have had the issue since the system was implemented July '16 however we were able to reconcile the accounts with the help of a BAQ for the first few months which we don’t have access to anymore.
I’m not competent in BAQ’s and was wondering if someone could assist to replicate a BAQ that splits the GL transactions per job rather than periodic posting?
There are two things I would consider before doing that.
Run the WIP Reconciliation Report for a single job for the time period required and/or
Create a separate style and WIP Recon Report that groups the report by job rather than by GL account. This will allow you to run the report for any time period and view the WIP transactions within that period by job.
I am experiencing some rounding errors between the “Work in Process” report and the gL. There are zero open jobs yet I have $0.20 variance. Was $0.02 prior month and the month before that (first go live month) was spot on. Any thoughts on what is going on?
