How to Bypass WIP

We are mostly producing to order. The costs go into WIP. When the job is finished, we ship the goods. This automatically creates an entry that moves the costs from WIP to inventory waiting to be invoiced. In invoicing, we use the get shipments action. This creates the shipment invoice. When we post the shipment invoice, the costs are automatically moved from the inventory waiting to be invoiced account to the cost of sales accounts. Epicor actually calls this inventory waiting to be shipped "A/R Clearing" in the company configuration.

Perhaps your system was not set up to do this? You would also want to check to see that the accounts are set up properly in company configuration, specifically in the Modules > All Modules > Control Accounts > COS Accounts and WIP Accounts. One thing that could cause the accumulation of costs in WIP with no relief is if you have the same account for COS and WIP in this control accounts section.

Bypassing WIP may relieve your current problem of costs accumulating in WIP and never going out, but it will create a new problem. If you truly have WIP, then you need to track the costs into and out of WIP. I'm thinking you would be well advised to track down the cause of the problem and fix it instead of doing the work around you propose.

FWIW, we are on 8.03.403. Things may be a bit different if your version is different.

Thom Rose
Controller
Electric Mirror LLC
HOTEL LUXURY

"The World Leader in Back-lit Mirrors & Mirror TV Technology"

T 425 776-4946
A 11831 Beverly Park Rd, Bldg D, Everett, WA 98204 USA
www.electricmirror.com<http://www.electricmirror.com>


From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of plamen21
Sent: Tuesday, September 07, 2010 1:59 PM
To: vantage@yahoogroups.com
Subject: [Vantage] Re: How to Bypass WIP



Disclaimer: I am not an accountant.
I have no idea what it does. All this time I thought it was related to production and the costs didn't go on the Jobs but in this WIP instead. We didn't have WIP in our accounting system (OSAS).
WIP is messing up the general ledger and it is a big headache to keep doing all the Journal entries necessary to undo the damage.
We don't know how to relieve it properly (apart from Journal entries).
Can we set it to auto-relieve as things are shipped and the Sales orders are shipped so it stops accumulating?
How do you relieve yours?

Thanks,
Plamen
Systems Administrator
Art Display Co.

--- In vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com>, Thomas Rose <t.rose@...> wrote:
>
> Please forgive my curiosity, but why would you want to do that? Don't you want to match your cost of sale to the sale itself? The way to do that is to have the costs go into the WIP account, and then relieve WIP when the sale is complete. What you propose sounds like a recipe for being unable to comply with the matching principle of accounting. Perhaps there is a good reason or scenario where this would be applicable, but I can't seem to think of one.
>
> Thom Rose
> Controller
> Electric Mirror LLC
>
> From: vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com> [mailto:vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com>] On Behalf Of plamen21
> Sent: Tuesday, September 07, 2010 8:03 AM
> To: vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com>
> Subject: [Vantage] How to Bypass WIP
>
>
>
> Hi,
> We need to reconfigure Vantage 803.407C so job costs don't accumulate in WIP, but go directly on Cost of Sales as they are incurred.
> Anyone know how?
>
>
>
> [Non-text portions of this message have been removed]
>



[Non-text portions of this message have been removed]
Hi,
We need to reconfigure Vantage 803.407C so job costs don't accumulate in WIP, but go directly on Cost of Sales as they are incurred.
Anyone know how?
> We need to reconfigure Vantage 803.407C so job costs don't accumulate in WIP, but go directly on Cost of Sales as they are incurred.
> Anyone know how?

Make your WIP and variance accounts the same as your COGS accounts?
Sure, you'll see extra transactions that will have no effect but that
would hit COGS immediately.

Mark W.
Thanks.
Where are they set up?
I only see the ones for Field service in the company setup.

Thanks,

Plamen Cheshmedjiev
Systems Administrator
Art Display Co.


--- In vantage@yahoogroups.com, Mark Wonsil <mark_wonsil@...> wrote:
>
> > We need to reconfigure Vantage 803.407C so job costs don't accumulate in WIP, but go directly on Cost of Sales as they are incurred.
> > Anyone know how?
>
> Make your WIP and variance accounts the same as your COGS accounts?
> Sure, you'll see extra transactions that will have no effect but that
> would hit COGS immediately.
>
> Mark W.
>
> Where are they set up?
> I only see the ones for Field service in the company setup.

Product Class
Please forgive my curiosity, but why would you want to do that? Don't you want to match your cost of sale to the sale itself? The way to do that is to have the costs go into the WIP account, and then relieve WIP when the sale is complete. What you propose sounds like a recipe for being unable to comply with the matching principle of accounting. Perhaps there is a good reason or scenario where this would be applicable, but I can't seem to think of one.

Thom Rose
Controller
Electric Mirror LLC

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of plamen21
Sent: Tuesday, September 07, 2010 8:03 AM
To: vantage@yahoogroups.com
Subject: [Vantage] How to Bypass WIP



Hi,
We need to reconfigure Vantage 803.407C so job costs don't accumulate in WIP, but go directly on Cost of Sales as they are incurred.
Anyone know how?



[Non-text portions of this message have been removed]
--- In vantage@yahoogroups.com, Mark Wonsil <mark_wonsil@...> wrote:
>
> > Where are they set up?
> > I only see the ones for Field service in the company setup.
>
> Product Class
>

I found it. It's Product Group. Thank you very much.

Plamen
Disclaimer: I am not an accountant.
I have no idea what it does. All this time I thought it was related to production and the costs didn't go on the Jobs but in this WIP instead. We didn't have WIP in our accounting system (OSAS).
WIP is messing up the general ledger and it is a big headache to keep doing all the Journal entries necessary to undo the damage.
We don't know how to relieve it properly (apart from Journal entries).
Can we set it to auto-relieve as things are shipped and the Sales orders are shipped so it stops accumulating?
How do you relieve yours?

Thanks,
Plamen
Systems Administrator
Art Display Co.



--- In vantage@yahoogroups.com, Thomas Rose <t.rose@...> wrote:
>
> Please forgive my curiosity, but why would you want to do that? Don't you want to match your cost of sale to the sale itself? The way to do that is to have the costs go into the WIP account, and then relieve WIP when the sale is complete. What you propose sounds like a recipe for being unable to comply with the matching principle of accounting. Perhaps there is a good reason or scenario where this would be applicable, but I can't seem to think of one.
>
> Thom Rose
> Controller
> Electric Mirror LLC
>
> From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of plamen21
> Sent: Tuesday, September 07, 2010 8:03 AM
> To: vantage@yahoogroups.com
> Subject: [Vantage] How to Bypass WIP
>
>
>
> Hi,
> We need to reconfigure Vantage 803.407C so job costs don't accumulate in WIP, but go directly on Cost of Sales as they are incurred.
> Anyone know how?
>
>
>
> [Non-text portions of this message have been removed]
>
Plamen,

Running the Capture COS/WIP Activity function at Month End relieves the WIP accounts. Is that part of your Month End procedures?

Thanks,
Aimee

--- In vantage@yahoogroups.com, "plamen21" <plamen21@...> wrote:
>
> Disclaimer: I am not an accountant.
> I have no idea what it does. All this time I thought it was related to production and the costs didn't go on the Jobs but in this WIP instead. We didn't have WIP in our accounting system (OSAS).
> WIP is messing up the general ledger and it is a big headache to keep doing all the Journal entries necessary to undo the damage.
> We don't know how to relieve it properly (apart from Journal entries).
> Can we set it to auto-relieve as things are shipped and the Sales orders are shipped so it stops accumulating?
> How do you relieve yours?
>
> Thanks,
> Plamen
> Systems Administrator
> Art Display Co.
>
>
>
> --- In vantage@yahoogroups.com, Thomas Rose <t.rose@> wrote:
> >
> > Please forgive my curiosity, but why would you want to do that? Don't you want to match your cost of sale to the sale itself? The way to do that is to have the costs go into the WIP account, and then relieve WIP when the sale is complete. What you propose sounds like a recipe for being unable to comply with the matching principle of accounting. Perhaps there is a good reason or scenario where this would be applicable, but I can't seem to think of one.
> >
> > Thom Rose
> > Controller
> > Electric Mirror LLC
> >
> > From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of plamen21
> > Sent: Tuesday, September 07, 2010 8:03 AM
> > To: vantage@yahoogroups.com
> > Subject: [Vantage] How to Bypass WIP
> >
> >
> >
> > Hi,
> > We need to reconfigure Vantage 803.407C so job costs don't accumulate in WIP, but go directly on Cost of Sales as they are incurred.
> > Anyone know how?
> >
> >
> >
> > [Non-text portions of this message have been removed]
> >
>