<h1 class="title">Project Work In Progress</h1> <p>This module enables to manage <cite>Work In Progress</cite> (WIP) accounting.</p> <div class="contents topic" id="table-of-contents"> <p class="topic-title">Table of Contents</p> <ul class="simple"> <li><a class="reference internal" href="#work-in-progress" id="id1">Work In Progress</a></li> <li><a class="reference internal" href="#cost-of-finished-goods" id="id2">Cost of Finished Goods</a></li> <li><a class="reference internal" href="#how-the-module-works" id="id3">How The Module Works</a></li> <li><a class="reference internal" href="#anlytic-entries" id="id4">Anlytic Entries</a></li> <li><a class="reference internal" href="#transfering-wip-to-cgs" id="id5">Transfering WIP To CGS</a></li> <li><a class="reference internal" href="#repeating-the-operation" id="id6">Repeating the Operation</a></li> <li><a class="reference internal" href="#analytic-entries" id="id7">Analytic Entries</a></li> <li><a class="reference internal" href="#transfer-wip-to-cgs-group" id="id8">Transfer WIP to CGS Group</a></li> <li><a class="reference internal" href="#contributors" id="id9">Contributors</a></li> </ul> </div> <a name="work-in-progress"></a> <h2><a class="toc-backref" href="#id1">Work In Progress</a></h2> <p><cite>Work In Progress</cite> is an account of the general ledger.</p> <p>It includes consumed products, direct labour costs and factory overhead costs related to an unfinished manufacturing project.</p> <p>Once a project is delivered, the costs associated to this project are transfered to the <cite>Cost of Finished Goods</cite> (CFG) or to the <cite>Cost of Goods Sold</cite> (CGS).</p> <a name="cost-of-finished-goods"></a> <h2><a class="toc-backref" href="#id2">Cost of Finished Goods</a></h2> <p><cite>Cost of Finished Goods</cite> (CFG) is a step between WIP and CGS.</p> <p>It represents finished products that are still in inventory. Not all companies maintain a CFG account, depending on their business requirements.</p> <p>The current module does not implement CFG. The costs of a project are transfered directly to the CGS when the project is finished.</p> <a name="how-the-module-works"></a> <h2><a class="toc-backref" href="#id3">How The Module Works</a></h2> <p>The module uses analytic accounts to dispatch WIP accounting entries per project.</p> <p>An action on the project allows to transfer all WIP entries into CGS.</p> <p>Each WIP entry is reconciled with its related CGS entry. New WIP entries can be identified easily and transfered into CGS.</p> <a name="anlytic-entries"></a> <h2><a class="toc-backref" href="#id4">Anlytic Entries</a></h2> <p>When transfering WIP into CFG, you get the following account move:</p> <img alt="static/description/account_move_wip_to_cgs.png" src="static/description/account_move_wip_to_cgs.png" /> <p>At this point, creating 2 analytic entries for this move would only pollute the database. One analytic entry would cancel the other.</p> <p>A mecanism is added by the module to prevent creating analytic entries for an account move.</p> <p>To use this feature, the field <cite>No Analytic Lines</cite> can be checked before posting the account move.</p> <img alt="static/description/account_move_no_analytic_lines.png" src="static/description/account_move_no_analytic_lines.png" /> <img alt="static/description/account_move_line_form_with_no_analytic_lines.png" src="static/description/account_move_line_form_with_no_analytic_lines.png" /> <p>The analytic account field is still used to filter the general ledger by project/job.</p> <img alt="static/description/general_ledger_filtered_by_analytic_lines.png" src="static/description/general_ledger_filtered_by_analytic_lines.png" /> <a name="transfering-wip-to-cgs"></a> <h2><a class="toc-backref" href="#id5">Transfering WIP To CGS</a></h2> <p>As member of the group <cite>Project / Manager</cite>, I go to <cite>Project / Configuration / Projects</cite>, then I select my project.</p> <img alt="static/description/project_form.png" src="static/description/project_form.png" /> <p>In the field <cite>Type</cite>, I click on <cite>Create and Edit</cite>.</p> <img alt="static/description/project_type_field.png" src="static/description/project_type_field.png" /> <p>I create a new <cite>Project Type</cite> named <cite>Manufacturing</cite>.</p> <img alt="static/description/project_type_form.png" src="static/description/project_type_form.png" /> <p>In the <cite>Accounting</cite> tab, I fill the following fields:</p> <ul class="simple"> <li>WIP To CGS Journal: This journal will be used when transfering WIP journal items into CGS.</li> <li>WIP Account: This account will be used to cumulate Work In Progress.</li> <li>CGS Account: This account will be used to cumulate Costs of Goods Sold.</li> </ul> <p>Back to the project form, I click on <cite>Save</cite>.</p> <img alt="static/description/project_form_save.png" src="static/description/project_form_save.png" /> <p>Now, In the <cite>Accounting</cite> application, we are going to post three accounting entries.</p> <p>One entry for raw materials.</p> <img alt="static/description/raw_material_entry.png" src="static/description/raw_material_entry.png" /> <p>One entry for direct labour.</p> <img alt="static/description/direct_labour_entry.png" src="static/description/direct_labour_entry.png" /> <p>One entry for outsourcing.</p> <img alt="static/description/outsourcing_entry.png" src="static/description/outsourcing_entry.png" /> <p>In the general ledger, I filter for the WIP account. The balance of the account is $ 300.00.</p> <img alt="static/description/general_ledger_before_wip_to_cgs.png" src="static/description/general_ledger_before_wip_to_cgs.png" /> <p>Back to the form view of my project, I click on <cite>Transfer WIP To CGS</cite>.</p> <img alt="static/description/project_wip_to_cgs_button.png" src="static/description/project_wip_to_cgs_button.png" /> <p>A wizard is appears.</p> <p>It allows me to select a specific accounting date for the transfer. By default, the current date is selected.</p> <img alt="static/description/wip_to_cgs_wizard.png" src="static/description/wip_to_cgs_wizard.png" /> <p>I click on <cite>Validate</cite>.</p> <p>Back to the general ledger, I notice that the balance of the WIP account is null.</p> <img alt="static/description/general_ledger_after_wip_to_cgs.png" src="static/description/general_ledger_after_wip_to_cgs.png" /> <p>Every debit in the WIP account is reconciled with its related credit.</p> <p>In the <cite>Cost of Goods Sold</cite> account, I notice 3 journal items.</p> <img alt="static/description/general_ledger_cgs_account.png" src="static/description/general_ledger_cgs_account.png" /> <a name="repeating-the-operation"></a> <h2><a class="toc-backref" href="#id6">Repeating the Operation</a></h2> <p>The operation can be repeated multiple times. Each time, only the new WIP entries will be transfered to CGS.</p> <p>If I go back to the project form and click on the button. The wizard will show $ 0.00 to transfer.</p> <img alt="static/description/wip_to_cgs_wizard_2nd_time.png" src="static/description/wip_to_cgs_wizard_2nd_time.png" /> <a name="analytic-entries"></a> <h2><a class="toc-backref" href="#id7">Analytic Entries</a></h2> <p>I go to <cite>Accounting / Adviser / Analytic Entries</cite>.</p> <p>I see 3 analytic entries. These are the analytic entries of my initial WIP journal entries.</p> <img alt="static/description/project_analytic_entries.png" src="static/description/project_analytic_entries.png" /> <p>The transfers from WIP to CGS did not create extra analytic entries.</p> <a name="transfer-wip-to-cgs-group"></a> <h2><a class="toc-backref" href="#id8">Transfer WIP to CGS Group</a></h2> <p>Since the version 1.1.0 of the module, the button to open the wizard on a project is only visible to a new group named 'Transfer WIP to CGS'.</p> <img alt="static/description/wip_to_cgs_group.png" src="static/description/wip_to_cgs_group.png" /> <p>Users do not need to be members of Project / Manager to transfer the journal entries.</p> <a name="contributors"></a> <h2><a class="toc-backref" href="#id9">Contributors</a></h2> <ul class="simple"> <li>Numigi (tm) and all its contributors (<a class="reference external" href="https://bit.ly/numigiens">https://bit.ly/numigiens</a>)</li> </ul>