Manufacturing: Manufacture WIP Report differences / not balancing with Manufacturing WIP Control account/s

Consider the following advice to resolve the above query:

A) Having multiple Work in Progress GL Accounts

Ensure that the Ledger – Sub-Ledger comparison / reconciliation is considering all WIP accounts if more than one WIP GL account exists.

B) Incorrect Setups

Always ensure your company’s Manufacturing setups have been done correctly.

B.1) Transaction Types (Codes) setup

1. Go to Bill of Materials | Maintenance | Defaults | Transactions tab.

2. In here closely inspect each Transaction Code listed below by individually opening/editing them and confirm if the correct, and valid GL accounts are in use currently.

Valid GL Account means:

An Active GL Account that is either a sub-account, or a GL account that does not have its own sub-accounts.

3. Where needed, change the GL accounts as required.

B.2) Inventory Groups setup

1. Go to Inventory | Maintenance | Groups.

2. Individually open each Inventory Group and closely inspect especially the Work in Progress Account field value to ensure the correct and valid GL account has been entered in there.

 Below is a typical example of having an incorrect GL account entered.

3. Change / fix any incorrect GL accounts as required.

B.3) Posting General Ledger Journals

If any GL account changes were made in B.1) or B.2) above, post GL journal/s on the relevant Work in Progress GL account/s to bring them in balance with your Work in Progress report.

C) Unstable Network Connections

Although this is not always a given, the abovementioned differences may have been due to an unstable network connection at the critical time when specific manufacturing process/es were processed.

Therefore, please consider the following:

1. The best advice in this case is to request/initiate a formal company data fix. Therefore, please consult with your Sage Evolution Business Partner or Sage Evolution Support to arrange this.

2. When done and where relevant, also consult with your main accountant/auditor if previously published and stated financial reports need to be restated/republished due to changed WIP Report balances for prior years.

This is because the WIP Report should always correspond with the company’s WIP Control account balance (and vice versa). If the WIP Report changes, it requires a corresponding change (GL Journal entry/ies) on the WIP Control account as well.

3. Of course, also check and fix any unstable network connections to prevent this from occurring in the future.