Defining WIP Accounting Classes_SPD

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System Process DocumentDefining WIP Accounting Classes

Department

Responsibility/Role

File Name 27599174.docRevision

Document Generation Date 14/01/2010 14:03:00

Date Modified 1/14/2010 02:03:00 PM

Last Changed by

Status

Defining WIP Accounting Classes

Trigger:

Concept

Accounting classes are used to group job costs. For example, if you build subassemblies and

finished goods, you can define your accounting classes to separately value and report the costs

associated with subassembly and finished goods production

When defining an accounting class, you assign valuation and variance accounts to it. When you

issue materials to a job that uses this accounting class, the appropriate valuation accounts are

charged. When the job is closed, final costs and variances are calculated and posted to thevariance and valuation accounts. When the accounting period is closed, these journal entries are

automatically posted to the general ledger.

In this topic, you will define an accounting class using the WIP Accounting Classes page.

Required Field(s) Comments

Output - Result(s) Comments

Additional Information

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Procedure

Step Action

1. Begin by navigating to the WIP Accounting Classes page.

Click the vertical scrollbar.

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Step Action

2. Click the WIP Accounting Classes link.



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Step Action

3. The WIP Accounting Classes page is used to define accounting classes for

grouping job costs. When you issue materials to a job using a specific accounting

class, the appropriate accounts are charged. These records are posted to the general

ledger.

Step Action4. Click in the Class field.



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Step Action

5. Enter the desired information into the Class field. Enter "Discrete1".



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Step Action

6. Click in the Description field.

Step Action

7. Enter the desired information into the Description field. Enter "Discrete

Accounting Class".



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Step Action

8. Click the Type option.



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Step Action

9. Accounting classes fall into several categories:

Discrete

Repetitive

Lot Based

Maintenance

You can define accounting classes for each type of discrete production you use.

Step Action

10. WIP accounting class valuation accounts are charged when you issue components,

move assemblies, complete assemblies, and charge resources.

Variance accounts are charged when jobs or periods are closed.



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Step Action

11. Click in the Material Valuation field.



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Step Action

12. Enter the desired information into the Material Valuation field. Enter "01-580-

7740-0000-000".

Step Action

13. Click in the Material Overhead Valuation field.



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Step Action

14. Enter the desired information into the Material Overhead Valuation field. Enter

"01-580-7740-0000-000".



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Step Action

15. Click in the Resource Valuation field.

Step Action

16. Enter the desired information into the Resource Valuation field. Enter "01-000-

2210-0000-000".



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Step Action

17. Click in the Outside Processing Valuation field.



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Step Action

18. Enter the desired information into the Outside Processing Valuation field. Enter

"01-000-2210-0000-000".

Step Action

19. Click in the Overhead Valuation field.



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Step Action

20. Enter the desired information into the Overhead Valuation field. Enter "01-110-

6100-0000-000".



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Step Action

21. Click in the Material Variance field.

Step Action

22. Enter the desired information into the Material Variance field. Enter "01-520-

5360-0000-000".



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Step Action

23. Click in the Resource Variance field.



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Step Action

24. Enter the desired information into the Resource Variance field. Enter "01-520-

5360-0000-000".

Step Action

25. Click in the Outside Processing Variance field.



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Step Action

26. Enter the desired information into the Outside Processing Variance field. Enter

"01-520-5370-0000-000".



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Step Action

27. Click in the Accounts: Overhead Variance field.

Step Action

28. Enter the desired information into the Overhead Variance field. Enter "01-520-

5370-0000-000".



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Step Action

29. Click in the Standard Cost Variance field.



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Step Action

30. Enter the desired information into the Standard Cost Variance field. Enter "01-

430-5110-0000-000".

Step Action

31. Click the Save button.



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Step Action

32. You have completed the Defining WIP Accounting Classes procedure.

End of Procedure.


Documents

Defining WIP Accounting Classes_SPD