Lynn_Pantic
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evolution (n) - gradual change to a different form
Posts: 5663
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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.
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