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Evo-ERP and DBA Classic >> Manufacturing >> GL account on PO is skewed after adding WO
http://www.istechforum.com/YaBB.pl?num=1579559236

Message started by Laura Oliver on 01/20/20 at 15:27:16

Title: GL account on PO is skewed after adding WO
Post by Laura Oliver on 01/20/20 at 15:27:16

Anybody else experience this?

DBA : A brand new PO is beting entered. AWO# in the PO line. Because they are on DBA they cant add a GL account. When you go into evo you will not see the GL account that came from the item class because the GL account was perverted by the addition of the WO#. i.e. The GL account is no longer what was on the item class but changes to my WIP Inventory account.

EVO: A purchase order line has a GL account but not a WorkOrder number.
We come back later and add a wo# and save the po and then go back into the Purchase Order to find that the GL is perverted (changed to my WIP Inventory account)
For some unknown reason adding a WO# after the fact perverts an existing GL account.
I have discovered that if you are in EVO, after you add the WO# you can go backwards and "re-go-thru" the GL Account and that somehow keeps the GL account from getting perverted.

Any and all ideas appreciated.
Laura

Title: Re: GL account on PO is skewed after adding WO
Post by Lynn_Pantic on 01/22/20 at 20:22:54

If you are purchasing an item for a work order, the GL Posting needs to go to WIP.

Title: Re: GL account on PO is skewed after adding WO
Post by Laura Oliver on 01/27/20 at 13:14:46

So how will the proper GL account eventually get credited? How and When?

Title: Re: GL account on PO is skewed after adding WO
Post by Lynn_Pantic on 01/29/20 at 19:30:15

WIP is the proper account for something purchased for a work order.

Title: Re: GL account on PO is skewed after adding WO
Post by Laura Oliver on 02/04/20 at 12:23:21

SM-C ... Could I just put the same expense account that I have on line 1 of column 1 in the WIP field?

f i go to SM-C I have the inventory/asset/expense account field filled in with a real GL account number. No other fields are filled out in the first column, only the first line of the first column. Nor do I ever touch the 2nd column of default accounts

I receive in a po (whether it be for supplies or bought for a job). We don't differentiate
I expect the GL account from the PO line to go the GL-O. I want it to be the expense account. I do not want it to be a WIP account. We don't use WIP. Could I just put the same expense acount on line 1 of column 1 in the WIP field? Maybe there is an extra step that the folks who use WIP do that i do not do that removes the WIP and puts back the expense account before it gets to the GL?

Sorry to be such a pain.
Thanks
Laura

Title: Re: GL account on PO is skewed after adding WO
Post by Laura Oliver on 02/05/20 at 13:23:50

Lynn_Pantic wrote:

The cost goes to WIP when the PO is received. it is not an expense, it is an increase in the WIP Asset value. It becomes part of the Finished Good value in Inventory (again, asset account) when Enter Finished Production is performed and becomes COGS expense when the item is shipped. Purchasing of raw materials, components and outside processing should never be an expense, it is an increase in asset value.

Will the purchase of raw material get out of the WIP Account and eventually get back into the COGS expense? I think it has to, but I don't understand how? We enter finished production but it doesn't effect our GL. I think I have that turned off.
Thanks
Laura

Title: Re: GL account on PO is skewed after adding WO
Post by prophet on 02/05/20 at 18:11:58

Once you finish production on the WO what you should see is credit to WIP and a Debit to Finished Goods Inventory.

Title: Re: GL account on PO is skewed after adding WO
Post by Laura Oliver on 02/06/20 at 09:58:19

Thank you!
Do you think that would still be true if I have AD-A post WO transactions set to No?

My AD-A looks like this

N Post COG xactions
Y Post PO xactions
N Post inventory adjustmens
N Post WO xactions

Y Permit use of item GL classes

Title: Re: GL account on PO is skewed after adding WO
Post by prophet on 02/06/20 at 10:08:03

If you have that setting set to N then no GL transactions to and from WIP will happen.

"Post WO transactions?

If this flag is set to Y, then all transactions in and out of WIP will create GL Transactions. Materials Issued to Work Orders will debit WIP and credit Inventory. Labor charged to Work Orders will debit WIP and credit the Absorbed Labor and Overhead accounts. Finished Production will credit WIP and debit inventory and any variance posting will post between WIP and WIP Variance with the debit or credit determined by whether the variance is positive or negative."

Title: Re: GL account on PO is skewed after adding WO
Post by Laura Oliver on 04/27/22 at 12:11:01

So if you are not posting WIP to GL then there is no fix.

We do not post WO to the GL so I suppose the best thing for us to do is to keep going backwards when we see the that the WO has corrupted the GL account. This is not too big of a deal even if save the line and then have to immediately go back into the PO line. Or worse we totally forget to change the corrupted GL account and then I fix it in GL-P
Thanks
laura