How to Relieve Unbilled Work in Process on a Job When the Billing Was Done in Accounts Receivable instead of Job Billing?
How to relieve Unbilled Work in Process on a job when the billing was done in Accounts Receivable instead of Job Billing?
Billing can be done through Accounts Receivable and a job number can be entered so that the transaction posts to the job. However, the system is not designed to relieve Unbilled Work in Process on a job when billing is done via Accounts Receivable Invoice Data Entry. There are 2 Options to clear the Unbilled Work in Process depending on if the job is open or completed.
- After changing the Job Status to Completed, the Job Closeout Report process will relieve all unbilled WIP. The system will generate a credit to the Work in Process account and a debit to the Material account. If the debit to the material account is not needed, then an additional one-sided journal entry should be created to remove it.
- Enter a Job Billing in Job Billing Data Entry for the remaining Unbilled Work in Process and update. This will result in a new invoice for the customer in Accounts Receivable. Use Accounts Receivable Invoice Data Entry to adjust this invoice to zero since the customer has already been billed. Drill Down on the invoice that was generated from Job Billing to determine which accounts should be entered when creating the adjustment.