Problem:
When working with jobs, costs originally posted to various GL Accounts need to be posted to a single WIP GL account then on completion to a single Job Cost Recognized GL account. Is this possible?
Answer:
Yes. But before diving into the detail, go to the Job Card and personalize the Job Task Lines to show the Job Posting Group column.
To allow posting to and from WIP from various expense accounts, create multiple Job Posting Groups. Each Job Posting Group will represent a combination of posting accounts. You will need one group for each expense GL Account used for original costs. To help keep Job Posting Groups straight, name them using the GL expense account number or name. Alternatively, assign a code that is descriptive of the type of expense to which the posting group will be applied.
Next, structure jobs so that each Job Task contains planning lines and related costs posted to only one expense account. For jobs with costs coming from multiple expense accounts, you will need to create multiple Job Tasks. For each Job Task line, assign the Job Posting Group containing the GL expense account used to post the costs/expenses as the cost applied account. Make certain each Job Task contains only job planning lines whose costs were posted to this one expense account.
Using this approach when WIP is calculated the original expense will be credited using the Job Posting Group’s costs applied accounts and debited to the WIP costs accounts. On completion, WIP will be credited to the WIP costs accounts and debited to Recognized Costs Account.
Summary:
Creating multiple Job Posting Groups and assigning them to Job Task Lines with proper Job Planning Line organization will allow you to use and control multiple costs applied and costs recognized accounts for WIP posting.
