Job Costing stock write off and Gain and Loss balance

When closing a job and doing a stock write off a new GL link needs to take place

 

Use GL account under Cost of Sales called – Job Costing Stock Write Off

  

 Setup a new GL link and GL Link setup

JOBSTKWRITEOFF                    Job Costing Stock Write Off

 

 Group Link

 

Create a new Document Type called Job Close Stock Write Off

 

JOBWRITEOFF                    Job Costing Stock Write Off

 

  Link GL Links

 

  Create Link under SCM

 

 Close Job and Final invoice for usage and percentage to use this new link

 

When Job is closed, then one must use the new link for the Job Costing Stock Write off.

We still use the Stock Journal Adjustment, but just with a different GL Link

 

  Percentage Invoice WIP correction

 

This is only applicable to the Percentage Job Invoice Final invoice

This function is to correct the difference between the WIP Ledger account and the stock write off when doing a final percentage invoice

 

Setup new GL account

 

 Setup a new GL Link

JOBGAINLOSS                              Job Costing Gain or Loss

GL Link Group

 

A new Document Type is created called Job WIP Correction

 

   

GL Link

 

 GL Link SCM setup

 

Create a new Job WIP Correction link

 

 Example

 

Quote Created

 

 Do first invoice – half

 

  Invoice posting

 

 T-Accounts

 

  Lines are managed, but more costs are added

 

 This means that the job has exceeded by R160-03

 

 Second Invoice

Did not manage other lines, therefore I made more profit

 

WIP Account will now show R800-00

And Stock write off is R560-04

Difference in WIP account is R239-96

 

 

 Balance of WIP needs to be done corrected

 

This happens when the WIP is higher

 

Debit WIP -                               R239-96

Credit COS Job Gain Loss          R239-96

 

IF the Costs are higher than (this is the default GL Links)

 

Debit COS Job Gain Loss          R239-96

Credit WIP -                               R239-96

 

One must work out all the estimate values posted to the WIP for that job, then take the difference between all the COS posted and then balance the WIP account

 

This corrects the balance based on the difference between actual values of the job versus the WIP account.