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  • 1.  Work In Process

    Posted 10-21-2019 03:26 PM
    In a manufacturing environment do you close out your WIP account as part of your month end process?

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    Maria Avery
    Controller
    Compax
    UT
    United States
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  • 2.  RE: Work In Process

    Posted 10-21-2019 04:27 PM
    No. It is an inventory account, ie a Balance Sheet Account, in other words a real account.

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    Evan Scarbrough CPA
    Governor - SCMS
    Sub Committee co-Chair - Small Business Committee
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    Original Message


  • 3.  RE: Work In Process

    Posted 10-22-2019 11:14 AM
    I'm sensing that WIP may be a trouble area for your company, and that seems to be normal. WIP is indeed an inventory account and should be reconciled each month at close. I've noticed some software programs can have a difficult time dealing with WIP, and due to the constantly fluctuating nature of WIP inventory as well as what may be dozens, if not hundreds, of open shop orders, reconciliation can get to be very problematic. It may take a major effort to keep up with WIP and ensure shop orders are being closed. 



    Original Message