WIA account (SAP Business One)

The WIA account (Work in progress) plays the role in SAP Business One of recording the values of work in progress. These are items that are in transition between the start of production and completion of the end product.

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Important aspects of the WIA account

Definition and setup:
The WIA account is entered in the item master data on the tab "Stock" defined.
Hierarchy of account determination:
The G/L account determination for the WIA account is carried out in the following order:
- G/L account determination by article, article group or warehouse
- Extended G/L account determination
- WIA account, which is held in the Parts list is defined
- Parent article WIA accounts
Use in production:
The WIA account is used for production transactions such as the issue of components for a production order.
Offsetting accounts:
- WIA P&L contra account: This is used when the value of a WIA account changes during the production process. It is activated if the option "Posting with balance sheet and P&L accounts of the manufacturing order document" in the Document settings (Tab "Per receipt") was elected.
- Inventory P&L contra account: This serves as an offsetting account for stock accounts in production transactions.
- WIA inventory variance account: This account is used to record variance amounts for work in progress. As soon as a production order is finalised, the total variance is automatically booked out. The WIA account acts as the main account here, while the WIA stock variance account serves as the contra account. The assignment is made via the account determination in the "Stock".

Special features of the WIA account

Direct material costs: In SAP Business One, the WIA account only records direct material costs, i.e. the value of the components. Overheads, production costs or personnel costs are not taken into account.
Automatic deviation equalisation: Variances in the stock of work in progress are cleared by the WIA stock variance account as soon as the production order has the status "Closed" receives.

The WIA account and its associated contra accounts ensure that all stock movements and value changes in the production process are precisely recorded and allocated to the corresponding accounts. This contributes significantly to correct accounting and inventory valuation.

the Versino Financial Suite supplements SAP Business One in connection with the WIA account with automated functions that facilitate financial accounting for production processes. It ensures precise and automatic posting of stock and contra accounts for production orders and enables automatic clearing of stock variances at the end of production.