Work In Progress Account (4841) and Cost of Goods Sold Account (4842)

The billing AAI number 4841 for the work-in-progress (WIP) account is required in order to process cost transactions when costs are associated with the workfile transaction. Otherwise, it is optional. This billing AAI defines the work-in-progress account that the system assigns to the accounting entry. The cost amount from the workfile transaction is credited to the account. When you enter a work-in-progress account, you must set up billing AAI number 4842 (Cost Of Goods Sold) to instruct the system to create balanced accounting entries. You use this billing AAI to reduce cost to WIP accounts.

The billing AAI number 4842 for cost of goods sold accounts is required when you set up base rules for billing AAI 4841 (Work In Progress). An entry to billing AAI 4842 is required to instruct the system to create balanced accounting entries. You use this billing AAI to debit (increase) the cost to cost of goods sold accounts.