How to Reconcile Work In Progress (WIP)

Reconciliation of Work In Progress (WIP) is an essential accounting process to ensure that your ledger and nominal balances align. Regular reconciliations help maintain accurate financial records and identify discrepancies early. Here’s a step-by-step guide to reconcile WIP effectively:

Step 1: Generate a Reconcile Report

1. Run a reconcile report for the required day.
2. Double-click on the Work In Progress option in the report menu.
3. Review the displayed report, paying special attention to the Balance column. This column represents the WIP from a ledger perspective.

Step 2: Run a Schedule Nominal

1. Generate a Schedule Nominal for the account 1.20.60.90. This report provides the WIP from a nominal perspective.

Step 3: Compare the Balances

1. Compare the ledger WIP balance (from the reconcile report) with the nominal WIP balance (from the Schedule Nominal).
2. These figures should closely match. Minor differences may occur due to timing or rounding issues.

Step 4: Address Discrepancies

1. If there are small discrepancies, it is advised to write them off to maintain alignment.
2. Larger discrepancies may require investigation to identify and correct the root cause.

Automatic Month-End Routine

• A routine in Navigator automatically runs at the end of each month. This process writes off any remaining balances that need adjustment, helping to streamline month-end reconciliations.

Best Practices

1. Perform WIP reconciliations weekly to stay on top of potential issues and maintain accuracy throughout the accounting period.
2. Document any adjustments made during reconciliation for future reference and auditing purposes.
3. Regularly review your processes and reports to ensure compliance with organisational policies and accounting standards.