In manufacturing companies, there is often a time lag between the start and end of production. During this phase, the WIA inventory account records the value of the products that have just been processed. At the end of a production cycle, the transactions posted to the WIP account must be audit-proof.
In SAP Business One, the reconciliation to the WIA stock account takes place automatically to simplify accounting:
Standard or special production order (output method: "manual")
- When the "Output for production" document is created, the WIA stock account is debited with the total costs of the components output.
- When the "Receipt from production" document is created, the costs of the finished product are credited to the WIA stock account.
- If there are differences between the component costs and the product costs, this difference is posted when the production order is finalised. The WIA stock account is cleared so that all postings relating to the production order are zero.
Offsetting
The WIA stock account of a production component is compared with the WIP deviation account of the parent item, even if WIP variance accounts are set up for component items.
Retrograde removal
For production orders with the "retrograde removal" method, the components are dispensed automatically:
- The "Receipt from production" document debits the WIA inventory account with the total costs of the components and simultaneously credits the costs of the finished product.
- Variances between component costs and product costs are posted when the production order is finalised. Even if there are no variances, a zero posting is made to set the balance of the WIA stock account to zero.
Dismantling order
For dismantling orders, regardless of the Output method ("manual" or "retrograde removal"), the tuning works in a similar way. The WIAStock account is debited with the cost of the product and the cost of the dismantled components is credited.
Automatic tuning
The reconciliation of the WIA balance sheet accounts is carried out automatically when the Production orderregardless of how many expenditure processes are linked to a production order. However, complete manual reconciliation before system reconciliation prevents further automatic reconciliation by SAP Business One.
Versino Financial Suite
the Versino Financial Suite offers the advantage of automated and precise mapping of the value management of „work in progress“ in relation to the WIP stock account in SAP Business One. It ensures correct, automatic posting of the stock and contra accounts in production processes and automatically balances out deviations in the WIP stock. This significantly reduces the manual workload for financial accounting.
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