WIP Accounting (Work In Progress Accounting)
Manage accounting for ongoing production
The MRP Accountant module bridges the manufacturing system (MRP) and accounting (Accounting) in Odoo. This module automates accounting records for manufacturing operations and manages WIP (Work In Progress) accounts.
Key Features
Key points
• Automatically record production costs to WIP (Work In Progress) account
• Manage WIP Overhead account for indirect manufacturing costs
• Integrate with Stock Accountant to synchronize inventory valuation
• Support real-time manufacturing cost accounting
User Groups
User Permissions
| Group | Permissions |
|---|---|
| Accountant | View reports, track manufacturing costs |
| Accounting Manager | Configure WIP accounts, approve journal entries |
| Manufacturing Manager | View manufacturing costs, track efficiency |
Important Terminology
| Fields | Trường dữ liệu | Description |
|---|---|---|
| WIP Account | Tài khoản sản xuất dở dang | Account for recording ongoing production costs |
| WIP Overhead Account | Tài khoản chi phí gián tiếp sản xuất | Account for recording indirect costs |
| Work In Progress (WIP) | Sản xuất dở dang | Products in production process |
| Overhead Cost | Chi phí gián tiếp | Costs not directly related to production |
| Direct Cost | Chi phí trực tiếp | Direct costs for production |
| Cost of Goods Manufactured (COGM) | Giá thành sản xuất | Total cost of completed production |
Configure WIP Accounts
Configure WIP and WIP Overhead accounts in Settings.
Steps
1. Go to Settings → Inventory.
2. Scroll down to Accounting section.
3. Find fields: WIP Account and WIP Overhead Account.
4. Select appropriate accounting account (usually account 154 - Work In Progress).
5. Click Save.
Configure WIP Account
WIP Account records ongoing production costs. This account should be a Current Asset account.
Configure WIP Overhead Account
WIP Overhead Account records indirect manufacturing costs (usually account 627 - Manufacturing Overhead).
Manufacturing Accounting Process
Automatic accounting flow from production start to completion.
Key points
• Start production: Record material consumption
• Journal entry: Debit WIP Account (154), Credit Inventory Account (152)
• Record labor costs: Debit WIP Account (154), Credit Payroll Account (334)
• Record overhead costs: Debit WIP Overhead Account (627), Credit Various Expense Accounts
• Complete production: Debit Finished Goods Account (155), Credit WIP Account (154)
View Production Journal Entries
Steps
1. Go to Accounting → Journal Entries.
2. Filter by WIP account to view production entries.
3. Or open Manufacturing Order and view Accounting tab.
Integration with Stock Accountant
This module requires Stock Accountant for full functionality.
Key points
• Inventory valuation: Automatically update inventory value when production completes
• Synchronize product costs with accounting system
• Support valuation methods: FIFO, AVCO
Integrated Reports
Key points
• Inventory Valuation Report: View work in progress value
• Stock Valuation: Track inventory value changes from production
Manufacturing Cost Reports
Steps
1. Go to Manufacturing → Reporting.
2. Select Cost Analysis.
3. View costs by: Product, Manufacturing Order, Time.
Accounting Reports
Steps
1. Go to Accounting → Reporting.
2. Select General Ledger.
3. Filter by WIP account to view details.
Efficiency Analysis
Key points
• Compare actual costs vs expected costs
• Track ratio of indirect costs / direct costs
• Analyze manufacturing cost trends over time
Initial Configuration
Key points
• Choose correct accounts: Ensure WIP account matches company chart of accounts
• Check integration: Ensure Stock Accountant is installed and configured correctly
• Test before applying: Create test manufacturing order to verify automatic entries
Cost Tracking
Key points
• Monitor WIP regularly: Check WIP account balance to detect stagnant work in progress
• Regular reconciliation: Compare accounting data with actual production data
• Analyze variances: Track unusual changes in manufacturing costs
Troubleshooting
Common Issues
| Issue | Solution |
|---|---|
| Entries not automatic | Check WIP account configuration |
| Data mismatch | Reconcile with Stock Accountant and Manufacturing |
| Cost variance | Check cost configuration on products and BOM |
Optimization
Key points
• Use Analytic Accounts: Attach analytic accounts to track costs by project/department
• Automate reports: Set up periodic reports with automatic email delivery
• Integrate with Budget: Connect with Budget module to control manufacturing costs