Impact of Shipping Direct Job before Job Completion vs. after?

We have been directed to only transact make-direct shipments against jobs marked as complete. However, for a variety of reasons, we often have non-billable ‘added materials’ after the initial shipment and invoice which require us to un-complete the job in order to add.

We would like to be able to recognize revenue without having to complete the job at the same time (ideally, we’d like to complete the job about 2 weeks after shipment to allow for any other materials to be added).

What would be the impact of revising our process as described?

Todd G.

Yeah, what a pain. The timing of the COGS clearing WIP gets funny when these dates straddle a month end. One scenario that caused issues for us was something like this. The job ships 3/31/21. You receive a purchase direct material on that job on 4/1/21. You are still trying to close AP and run capture for 3/31/21 on 4/2/21 for the last time. You will get a debit to cogs and credit to wip on 3/31/21 for the material received on 4/1/21 and the related debit to WIP and credit to AP will happen on 4/1/21.

I would also look at what happens to WIP transactions after the first capture with the job shipped when the job is still not completed. They might get stuck in WIP when you probably want that cleared out.

I’m sure there are many other scenarios you would want to check out but those are two that I would get with accounting on before making to switch.