How do other Visual companies account for partial WIP in an actual costing environment?
Example, we build 100 widgets that have a material cost of $1 each. We issue all material to the work order, complete and ship 20 units at the end of July. With every other system I've worked with in the past (all standard costing), when qty 20 was transacted into FG from WIP, $20 would debit FG, $20 would credit WIP. My ending July balance would show $80 still in WIP. Visual moves all costs incurred at the point of the first completion into COGs which, in our case, usually means 100% of the material COGs is moved at that time even though we haven't shipped all the units. This goes against the matching principle of accounting.....
Any feedback, ideas, suggestions, are appreciated.
Thanks,
Jill
