when closing out WIP for homebuilder

Question

when closing out WIP for homebuilder it keeps telling me WIP does not equal Job Costs. When I go into job costs and record it tells me the same thing. what am I missing?

Char DeLange · Answer

When you code things to a wip account it needs to be job costed just like you do for direct expense accounts. Check your totals at the bottom of the job cost screen. It will tell you how much of the front side of your transaction has to be job costed. When they match it will save. 
Also is this job supposed to be a wip account? 
If it's flagged for Wip on the 3-5 screen then Sage is expecting you to code expenses to Wip. Do you own the job or is it billed to a client? If it's billed to a client and you receive cash then you do t own the property and it should not be a wip job. 
 
Be very careful that you understand the feature of Wip in Sage. It it NOT the same as an accounting Wip adjustment that CPAs will make to keep income and billings in check.

Char DeLange · Answer

OK, so does the WIP account at menu 1-7 have the box checked to create job #s as subaccounts? Then when you create new jobs it will automatically create the necessary subaccounts. 
 
I forgot to ask you how the payroll positions are coded. Are they set to go hit the WIP account instead of the direct expense account? 
 
Maybe we should do a gotomeeting and let me look at your setup.

Sage Construction & Real Estate

when closing out WIP for homebuilder

COMMUNITY

COMPANY

PARTNERS

SUPPORT & TRAINING