Previous  Next          Contents  Index  Glossary  Library

Period Close Transactions

The period close process in Inventory recognizes variances for non-standard expense jobs and repetitive schedules. It also transfers the work in process period costs to the general ledger.

Costing Non-Standard Expense Job Period Close Transactions

You can close discrete jobs and recognize variances for non-standard expense jobs at any time. In addition, the period close process automatically recognizes variances on all non-standard expense job charges incurred during the period. Therefore, open non-standard expense jobs have zero WIP accounting balances at the start of a new period.

If there is a positive balance in the job at the end of the period, the accounting entries for non-standard expense jobs at period close are:

Account Debit Credit
WIP accounting class variance accounts XX  
      WIP accounting class valuation accounts   XX

Costing Repetitive Schedule Period Close Transactions

You do not close a repetitive schedule. However, you do recognize variances on a period basis that result in zero WIP accounting balances at the start of the new period. You should check your transactions and balances using the Repetitive Value Report before you close a period.

When you define Work in Process parameters, you can specify which repetitive schedule variances you recognize when you close an accounting period. You can either recognize variances for all repetitive schedules when you close an accounting period, or recognize variances for those repetitive schedules with statuses of either Complete - No Charges or Cancelled.

Assuming positive balances in the repetitive schedules at the end of the period, the accounting entries for repetitive schedules at period close are:

Account Debit Credit
WIP accounting class variance accounts XX  
      WIP accounting class valuation accounts   XX

See Also

Overview of Period Close

Overview of Discrete Job Close

Defining WIP Parameters

         Previous  Next          Contents  Index  Glossary  Library