Jobs/Projects – WIP postings – Business Central

Jobs/Projects – WIP Postings

There are five WIP (work in progress) methods in Business Central job module. The most widely used WIP methods are percentage of completion (POC) and completed contract. This post explains the posting entries of these two WIP methods. 

Completed contract WIP method
Run WIP

There are two WIP posting methods: 

1. Per job – the total WIP costs and the sales value is used to calculate WIP. 
2. Per job ledger entry – the accumulated values of WIP costs and sales are used to calculate WIP. 

If ‘Per job’ is selected as WIP posting method, following G/L entries are posted for WIP: 

Dr Job sales applied account (Job posting group) 
Cr WIP invoiced sales account (Job posting group) 

Dr WIP costs account (Job posting group) 
Cr Job costs applied account (Job posting group)

 

If ‘Per job ledger entry’ is selected as WIP posting method, the following G/L entries are posted for WIP: 

Dr Job sales applied account (Job posting group) 
Cr WIP invoiced sales account (Job posting group) 

Dr WIP costs account (Job posting group) 
Cr Item costs applied account (Job posting group) – Posts costs related to item consumption. 
Cr Resource costs applied account (Job posting group) – Posts cost related to resource consumption.

Completion of job

Dr WIP invoiced sales account (Job posting group)
Cr Recognized sales account (Job posting group)

Dr Recognized costs account (Job posting group)
Cr WIP costs account (Job posting group)

Percentage of completion WIP method
Run WIP

Recognized sales
Dr WIP accrued sales account (Job posting group)
Cr Recognized sales account (Job posting group)

Recognized costs
Dr Recognized costs account (Job posting group)
Cr WIP costs account (Job posting group)

WIP sales
Dr Job sales applied account (Job posting group)
Cr WIP invoiced sales account (Job posting group)

WIP Costs
Dr WIP costs account (Job posting group)
Cr Job costs applied account (Job posting group)