Huge amount in WIP Account

[Former Member]

Dear all,

We have a amount of 64M on debit side in WIP account. Which is too huge. I have checked all the Production Orders are completed with the extra Receipt than Planned. It should be on Credit side. Logically, WIP account gets cleared once Receipt from Production is entered. Kindly help in this regard as there are large number of entries in GL.

Regards

Nabeel

[Former Member]

Hi Nabeel.........

Basically there are two WIP named Accounts.

1. WIP Account which comes during Production

2. WIP Inventory Changed Account which comes when complete production is done and production order is closed......

Which one you are talking about.....

Regards,

Rahul

[Former Member]

I am talking about WIP Account that posts in Issue For Production.

[former_member184718]

Hi Nabeel,

In SAP Business One, the postings to the WIP inventory account are automatically reconciled as follows to facilitate the accounting process:

In the case of a standard or special type of production order with the “Manual” issue method, the reconciliation process is as follows:

When you create the “Issue for Production” document, the WIP inventory account is debited with the total cost of issued components.

When you create the “Receipt from Production” document, the WIP inventory account is credited with the cost of the finished product.

If there is a variance in the WIP inventory account postings between the component cost and the product cost, the variance is posted when the production order is closed. As a result, the overall WIP inventory account balance in respect of the production order postings is brought to zero, and these WIP inventory account postings are fully reconciled.

Thanks.

Hari

[Former Member]

I am also talking about the same account which will be zero when you close the production order and it is necessary to close it in order to generate Production Gain or Loss.......

Regards,

Rahul