Automatic reclassifying of WIP??

SUGGESTED

Would REALLY like a way to have all the WIP costs transferred automatically from WIP to Direct Expense when I complete and post the invoice.  Is there any way to do this???  Or does anyone have an infamous "Sage Workaround"?

We can have hundreds of invoices each month, and I have to go through each one to figure out the labour and material portion that was used that month, then have to move it manually via journal entries.  Shouldn't this be automatic?  They are soooo close with this WIP option but yet still so far.

Also, it would be nice if the WIP labour posted separately (i.e. didn't just lump sum all the CPP/EI/Vacation/Labour together).  And was also moved back to the proper Direct Expense accounts (CPP expense, vacation expense etc) when billed.  We like to track these separately.  Anyone have any workarounds for that?

  • 0
    SUGGESTED
    Good news!
    It sounds like you may have misunderstood the purpose of the WIP check box in Sage 100 Contractor. It is intended for developers who actually buy the land and own the project while it is being built. Then all the costs are moved via one large journal entry when the property is sold so that the income and expenses hit the P&L in the same year and month. If you invoice your customers for the work, then those are not WIP jobs and the costs should go to direct expense when they are processed. Just go back to your jobs and uncheck the WIP box to turn off that feature. You will be so glad you did as you will not need to do all the extra work you are doing now.

    This can sometimes be confused with the concept of Work in Progress reporting where all costs are booked to direct expense. Then on a monthly or quarterly basis the % complete is compared to what has been billed using a report 6-1-7 or 6-1-8. An over/under journal entry adjustment is posted to your books. Those adjustments are not made to the jobs specifically but just to a contra income account.
  • 0 in reply to Char DeLange
    We run jobs that can last over 6 months to a year... so I'd like to keep costs off the books until we actually invoice the customer at the end of the job (so that my expenses and income hit the P&L in the same month). We purchase and hold all the inventory for the job and do not bill until the job is complete, so theoretically the WIP function should work for this. However, since it is all manual journal entries, it just creates a ton more work.
  • 0 in reply to Char DeLange
    Hi Char,
    I'm having a similar problem.
    When I follow your instructions and "go back to your jobs and uncheck the WIP box to turn off that feature." I can't Final Compute Payroll because the subaccounts don't exist.
    Suggestions?
    Thanks.
    ~j
  • 0 in reply to smaris
    Then you might want to set up a recurring JE or template to post these JE and just update the amounts before posting. That should save you some time. Remember when you are moving things from WIP to direct expense you don't need to repost job costs.
  • 0 in reply to jamesrshoemaker
    Hi James
    Do your direct expense accounts have subaccounts? or departments?
    Typically only the WIP GL accounts are subaccounted by job. If your DE is departmentalized then you'll want separate employee positions to control the departments.
  • 0 in reply to Char DeLange
    HI Char,
    Thanks for your help.
    Our direct expense accounts have subaccounts, by job number, because that is the only way I could find to post out payroll.
    While the recurring JE would assist with making the entry each week, I'd much rather be able to job cost payroll without having to utilize WIP Assets.