Generate WIP

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1 Introduction
2 AFE Requirements
3 Running the Work in Progress (WIP) transfer process

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

AFE Requirements

The Generate WIP process automatically transfers work in progress costs to the appropriate capital or expense account based on the values you enter on the Processing Information tab of the AFEs screen. Since WIP costs are transferred at the net level, run the WIP transfer process after posting and joint interest billings.

A check mark in the WIP Transfer check box of the AFEs screen indicates that WIP costs should be transferred. If the check box is left blank, the system does not transfer costs and they remain in the net accounts for the AFE.

Use the drop-down box in the Processing tab in the AFEs screen to specify whether the project is exploratory or development in nature. Select either:

Exploration
Development

Enter one of the following system-defined codes in the Capital/ Expense field.

C - Capitalize Costs
D - Dry hole or expense
Z - Other

This can be assigned at the cost centre level in the Cost Centres screen for Blanket AFEs, if required.

The WIP transfer process looks for all uncleared line items in WIP net accounts for AFEs where the WIP Transfer is checked.

In general, line items with cost centres marked capital are transferred to capital accounts and those marked expense are transferred to expense accounts. The transfer creates a transfer and reversing entry for each line item.

Running the Work in Progress (WIP) transfer process

To run the WIP transfer process:

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

2. Enter WIP transfer information.

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

In this field...	Enter this information...
Organization ID (one/many/all)	Organization ID for the WIP transfer process. Enter an organization ID or select from the Organization List of Values.
Accounting Period End Date (YY/MM)	Accounting period for the WIP transfer process in the format YY/MM.
Preliminary/Final (P/F)	Preliminary to review WIP transfer results. No voucher is created. Final to run the final WIP transfer process. Voucher is created.
Summary or Detail (S/D)	Summary will generate a report that is summarized at the AFE/Cost Centre. Detail will provide the information at the AFE/Cost Centre and Account level.

3. Enter the print information in the Print section.

4. Select the Save icon to save the process parameters.

If you save these parameters, you can recall them by clicking the Re-query Params button the next time you run the process.

5. Select the Submit button to submit the report. A pop-up message screen appears when the process is successfully submitted.

6. Select the OK button to acknowledge the message.

7. Select the Exit icon to close the screen.

8. Post the voucher created by the WIP Transfer Process.