Adjust the cost of work in process

Sometimes you need to make cost adjustments for a job that is already in process. For example, if a customer agrees to accept a partial shipment when your company completes a portion of the job, and your company ships those items, you adjust funds in the cost of goods sold and work in process accounts to better match COGS and revenue.

When you adjust costs for works in process, you post transactions to the general ledger. You post to the accounts indicated on the WIP Adjustments screen.

To view costs transferred to the general ledger, print theOrder Cost Data Trans to GL report before and after you adjust the cost of a work in process. You can also check the cost of goods sold.

To adjust the cost of a work in process

1. Open the WIP Adjustments (AWIP) page.

   1. Select Financial Management > Financial Transactions > Order Costing > WIP Adjustments.

      Or

   2. Search for AWIP in the Navigation box and then select WIP Adjustments.

      The WIP Adjustments (AWIP) page appears.

2. On the Toolbar, click Browse.

   The Browse For WIP Adjustments (AWIP) window appears.

3. Highlight the required job order and click Select. Or, double-click the job order to use.

4. In the Transfers To area, in the required categories, type the amounts for this job that you want to transfer from the WIP account to either the COGS account (customer jobs) or variance account (internal jobs). Or type the amounts to transfer back from the COGS/variance account to the WIP account.

   On theToolbar, click Transfer All Out Of WIP to transfer all the funds for this job from the WIP account to the COGS/variance account. Or click Transfer All To WIP on the header to transfer all the funds for this job from the COGS/variance account to the WIP account.

5. On the Toolbar, click Save to save the changes.

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