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Cr Current trade payables
- Create WIP Cost Adjustment Document- With this document, the user can manually close WIP accounts by transferring WIP costs to expense GL accounts, Construction-in-Progress, and Capital Improvements accounts, or adjust costs between WIP accounts as needed. Here, the WIP value will be transferred to Capital improvement account.
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Create a new WIP Cost Adjustment document and enter the entity details on the main tab.
On the WIP tab, click Fill to populate all WIP balances, or click Pick Work in Progress to select specific WIP balances.
Select the Capital Improvement to Fixed Assets GL account in the Dr GL Accounts column. Add the dimension for the fixed asset that will receive the improvement, and choose the corresponding expense item.
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Cr Work in Progress-main production
- Create capital improvement to fixed assets document, to transfer the balance from Capital improvement GL to the fixed asset. To know more about this document refer Capital Improvement to Fixed assets
Go to Asset management > Capital Improvements to Fixed assets
Create a new document and input the necessary details in the main tab. Next, go to the fixed asset tab, click "Add," and select the fixed asset; most fields will be auto-filled. In the lower pane, add the expense by using the "Fill" option to automatically populate the expense details. Select the relevant expense or enter it manually if required.
Once the expense is added, the gross cost and depreciable cost will be revised.
The below entry will be created
Dr Fixed assets at cost
Cr Capital improvements to PPE
- Review the effect of the transaction in the respective GL i.e. Capital Improvements to PPE and Fixed assets at cost.
Thanks for being a Firstbit Customer! #WIP cost adjustment #Fixed assets improvement #Capital improvement