WIP Reclassification Rules

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1 Introduction
2 Maintain WIP Rules

Introduction

The Work in Progress (WIP) transfer process is part of the Fixed Assets accounting support provided by Qbyte Financial.

This process includes:

WIP Reclassification Rules
Generate WIP

The WIP reclassification rules are linked to the chart of accounts. You can use these rules to specify the capital asset and expense accounts used for the net asset account by organization and cost centre type. You can also specify another capital account used to transfer costs to Exploration and Evaluation Costs or Capitalized Costs when the well is unsuccessful but is recognized as a development effort.

Maintain WIP Rules

1. Navigate to the menu and select Fixed Assets → WIP Reclassification Rules

2. Enter WIP reclassification rule information.

In this field...	Enter this information...

In this field...	Enter this information...
Major account	The major net account that the costs will be transferred from using the WIP Transfer Process. The account for capital costs of an exploratory or developmental nature are accumulated until the project is completed. Enter the major account or select from the Major Accounts list of values. System automatically populates the description field.
Minor account	The Minor account that the costs will be transferred from using the WIP Transfer Process. Enter the minor account or select from the Accounts list of values which displays both the major and minor code. System automatically populates the description field.
Organization	Optional. Organization ID is entered if this rule only applies to the specified organization. Before you add an organization, you must set up a base rule for a major/minor account. Enter the organization ID or select from the Organizations List of Values. System automatically populates the description field.
Cost Centre Type	Optional. Cost centre type is entered if this rule only applies to the specified cost centre type. . Before you add a cost centre type, you must set up a base rule for a major/minor account without an organization or a cost centre type first. Enter the cost centre type or select from the Cost Centre Type Code List of Values. System automatically populates the description field.
Reversal Account	If this field is entered, the WIP Process will use the account to offset the costs from the Major / Minor account when transferring costs to the capital or expense accounts. Enter the reversal account or select from the Accounts list of values. System automatically populates the description field.
Capital Account	The capital account used to transfer WIP costs when the Capital / Expense flag on the AFE is set to "C" - Capital. Enter the capital account code or select from the Accounts list of values. System automatically populates the description field.
G/L Sub Code	Optional: G/L Sub Code only appears when the Account GL Sub Code Required is set to Y. Enter a GL Sub Code when required for the Capital account or select from the list of values.
Expense Account	The expense account used to transfer WIP costs when the Capital or Expense flag on the AFE is set to "D" Dry hole or expense. Enter the expense account code or select the Accounts list of values. System automatically populates the description field.
G/L Sub Code	Optional: G/L Sub Code only appears when the Account GL Sub Code Required is set to Y. Enter a GL Sub Code when required for the Expense account or select from the list of values.
Other Account	The account where the net WIP costs are transferred for Exploration and Evaluation Costs or other accounts when the Capital or Expense flag on the AFE is set to "Z" - Other. Enter the expense account code or select the Accounts list of values. System automatically populates the description field.
G/L Sub Code	Optional: G/L Sub Code only appears when the Account GL Sub Code Required is set to Y. Enter a GL Sub Code when required for the Other account or select from the list of values.
Remark	User-defined remark about the WIP reclassification rules.

3. Select the Save icon to commit the information.

4. Select the create record +New icon to add more WIP Reclassification Rules.

5. Select the Exit icon to close the screen.