Work in Progress?

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:28AM in AAT student discussion
Does anyone know how to record work-in-progress on a SAge or similar system.<BR><BR>I read somewhere that it should be debited to an asset account and credited to an income account. <BR><BR>But someone else said it should be debited to an account but credited to a cost of sales account.<BR><BR>I can see they both seem to work out the same but does anyone know if they're both correct?<BR><BR>Thanks for any help.

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Work in Progress?

    Hi,<BR><BR>I currently run sage line 50 and to record work in progress at the month end I post the following journals:<BR><BR>WIP opening figure Debit WIP account (In sage this account is already set up for you and is 5210)<BR><BR>WIP opening figure Credit Balance sheet (As above but account No 1002)<BR><BR>WIP Closing figure Credit (5211 closing WIP account)<BR><BR>WIP Closing figure Debit Balance sheet (1002)<BR><BR>Sage will then work out the difference and it will be correct on your P&L account. The same applies to opening and closing stock figures.<BR><BR>Hope this helps.<BR><BR>Sarah

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