Production Processing: Reconciling WIP to the GL

Production orders that have had transaction posted represent your work in process inventory. The work in process balance is updated by every production transaction with a cost. Each production order can have a different work in process account and subacount or use the same account and subaccounts.

Before Creating Production Orders

The WIP accounts used in production management should have a zero balance. If they do not, you will not be able reconcile the production work in process balances to your general ledger.

Reconciling Each Period

Similar to inventory where the Inventory Valuation (IN615500) report can be used to validate the GL account balances, the Work in Process (AM654000) report should agree with the GL account balances. Use the total of the WIP Balance column for each account and subaccount.