Work in Process
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As accrual accounting software, by default, Design Manager records purchases from Vendors into the Asset Account of Work in Process. The cost of a purchase will remain in Work in Process until the client is invoiced for the merchandise whereby the cost will be transferred out of Work in Process into the proper Cost of Goods Sold Account. Recording purchases in this manner provides a clearer picture of the true fiscal standing of the company as the cost of purchase does not effect the net income until the client is invoiced.
Design Manager can, however, be configured to record purchases directly into Cost of Goods Sold by de-selecting the Auto WIP Accounting option. To do, first open the Company Information Window by selecting File - Company Settings. On the Company Information Window, click the Advanced button to display the Company Advanced Options Window[****]shown below.
Now, go to the General Tab and uncheck the Auto WIP Accounting option in the lower left corner. Click the OK button on the Company Advanced Options and Company Information Windows to save the setting. Now, the cost from all Vendor Invoices recorded in Design Manager will go directly into the appropriate Cost of Goods Sold Accounts.
It may, however, be desirable to leave Work in Process activated for the majority of Projects but have other Projects record their cost directly into Cost of Goods Sold (model homes, for example). In this case, the Auto WIP Accounting option would be selected on the Company Advanced Options Window. For any Project that needs to have activity post into Cost of Goods Sold, the Bypass WIP option can be configured. To change the setting for a particular Project, open the Projects Window by clicking the Projects and Specifications Window, highlight the desired Project on the Specification Tree, and click the Edit button. On the Projects Window, go to the Defaults Tab and click the Advanced / Mark-up button to display the Project Advanced Options Window. On the General Tab, select the Bypass WIP option in the lower left corner.
Lastly, an individual Item can also be configured to bypass Work in Process assuming Auto WIP Accounting is configured. To do so, go to the Projects and Specifications Window, select the appropriate Item on the Specifications Tree, and click the Edit button. On the Item Window, go to the Status Tab to uncheck the Bypass WIP option.