WIP Element Settement to Asset or Cost Center?

[swamy_parna]

Dear All,

In EPC, BOT and Consulting WIP element is settled to Asset or Cost center if they what to sell the product after build the asset how we have to account in FICO?

Regards,

Swamy

[former_member198650]

Hi Swamy,

If you have to settle the asset and after that you want to sell it. Then the entry will be:

Customer A/c Dr

Accu.Dep.A/c Dr

Asset A/c Cr

loss/profit on sale of asset A/c Cr/Dr

Or settle to cost center, then the entry will be:

Customer A/c Dr

Exp.A/c Cr with CC

Regards,

Mukthar

[swamy_parna]

Thanks Mukhar Ali ...

Sorry in the title i mentioned WIP instead of WBS Element

My doubt is in EPC(Engineering Procurement Construction) business how the WBS work and if customer want to sell the asset after Construct of building.

Regards,

Swamy