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WIP Takeups - How to Offset

This function allows you to match off (offset) costs on a job against a WIP billing amount.

💡 You must configure two separate General Ledger accounts in DEFAULT GL POSTINGS for this feature to work properly:

  • WIP Account

  • Advance Billing Account

Setup Requirements

  1. Navigate to: ACCOUNTING > General Ledger > General Ledger Statements and Reports > POSTING GL Accounts

  2. Click on DEFAULT GL POSTINGS.

  3. Ensure both a WIP Account and an Advance Billing Account are defined.

Use Case

  • Month 1: You invoice a client $10,000 in advance for expected supplier costs.

  • Month 2: You receive supplier invoices totaling $4,000, with $6,000 in costs still to come.

  • The Aged WIP Report will show:

    • $10,000 credit in Month 1

    • $4,000 debit in Month 2

  • Instead of displaying both transactions separately, you may want to offset them and display a $6,000 remaining credit.

Steps to Offset WIP Costs

  1. Navigate to: ACCOUNTING > General Ledger > WIP Takeups

  2. Click New WIP Take-Up.

  3. Select the Job No. as usual.

  4. Choose the new OFFSET option, then click Next.

  5. Select the supplier cost(s) to offset (e.g., $4,000 in posted supplier invoices), then click Next.

  6. Select the invoiced amount to offset against (e.g., the $10,000 advance billing), then click Next.

  7. Complete the WIP Take-Up and Approve as usual.

Reporting

  • The Aged WIP Report will now show a net balance of $6,000, representing the advance invoice minus the offset costs.

  • To view full transaction history (instead of the net value only), check the box for:

    • Display Offset History

    • This will show both the $10,000 credit and the $4,000 debit.

✅ You can repeat this process as new costs are received, continuing to offset them against the remaining WIP balance.