CenterPoint® Accounting for Agriculture - Expense Applied Work in Process Products

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Expense Applied WIP Products to Cost Accounts Video - Duration: 2 min 20 sec

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Processes > Production > Expense Applied Work in Process Products transfers all crop inputs used to grow the harvested crop from the Work in Process asset accounts to cost of goods accounts.

Harvesting your crop generates revenue to the operation whether it is stored or sold. We recommend using the same time frame to expense the products applied to grow the crop. Both the New Crop Production entries and the Expense Applied Work in Process Products entries are assigned crop production center details. The crop revenue and the cost of product inputs represent a large portion of the crop production center detail’s net profit.

  • The process expenses Work in Process assets with a crop production center and product balance details.
  • The values in the Work in Process assets are transferred to expense or cost of goods accounts.

  1. Select Processes > Production > Expense Applied Work in Process Products.
  2. Click Create New.
  3. Select the Company.
  4. Enter the harvest date in Transaction Date.
  5. Select a Production Center Detail you wish to expense.
  6. All Work in Process accounts with a balance detail for the selected Production Center Detail display in the grid.

  1. Each WIP Product is listed with its offsetting Expense/Cost of Goods Account, Product, Units (for this PC Detail), Unit of Measure, Cost (for this PC Detail), and Cost/Acre. The Cost/Acre is calculated based on the WIP Product’s Cost divided by Acres.

  2. Changes cannot be made from this screen. If any changes are needed, return to Processes > Production > Apply Crop Inputs by Field.
  1. In Apply Crop Inputs by Field, select the Production Center Detail at the top of the screen.
  2. The products will list in the grid. Edit advances you to the original entry screen to make any modifications.
  1. Click Post to complete the expensing of all products assigned to the selected crop production center detail.
  1. The Work in Process asset balance(s) for the selected crop production center detail and product are credited (decreased).
  2. The Expense/Cost of Goods accounts for each product are debited (increased) WITH the crop production center detail and product.
  1. The posted transactions display in the List tab.
  2. Review displays the products included in the Expense Applied Work in Process transaction.
  3. Delete reverses the transaction.

Document: 3377

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