Assembly Completion Transactions
Use the Completion Transactions window, Move Transactions window, and Inventory Transaction Interface to move completed assemblies from work in process into subinventories. Completion transactions relieve the valuation account of the accounting class and charge the subinventory accounts (for example, finished goods) based upon the assembly's elemental cost structure.
Costing Assembly Completion Transactions
Completions decrease work in process valuation and increase inventory valuation at standard costs. The accounting entries for completion transactions are:
| Subinventory elemental accounts
| XX
|
|
| WIP accounting class valuation accounts
|
| XX
|
Earning Assembly Material Overhead on Completion
You can assign overheads based on Item, Lot or Total Value basis. For standard discrete jobs and repetitive schedules, you can earn these overheads as you complete assemblies from work in process to inventory.
The accounting entries for material overhead on completion transactions for standard discrete jobs and repetitive schedules are:
| Subinventory material overhead account
| XX
|
|
| Inventory material overhead absorption account
|
| XX
|
Use non-standard expense jobs for such activities as repair and maintenance. Use non-standard asset jobs to upgrade assemblies, for teardown, and to prototype production. Non-standard discrete jobs do not earn overhead on completion. Since you have already earned overhead to produce the assemblies as you are repairing or reworking, Work in Process prevents you from double earning material overhead on these assemblies.
The accounting entries for material overhead on completion transactions for non-standard expense and non-standard asset jobs are:
| Subinventory material overhead account
| XX
|
|
| WIP accounting class material overhead account
|
| XX
|
See Also
Completing and Returning Assemblies
