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General Ledger

WIP Take Ups

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

Navigate to: ACCOUNTING > General Ledger > General Ledger Statements and Reports > POSTING GL Accounts
Click on DEFAULT GL POSTINGS.
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

Navigate to: ACCOUNTING > General Ledger > WIP Takeups
Click New WIP Take-Up.
Select the Job No. as usual.
Choose the new OFFSET option, then click Next.
Select the supplier cost(s) to offset (e.g., $4,000 in posted supplier invoices), then click Next.
Select the invoiced amount to offset against (e.g., the $10,000 advance billing), then click Next.
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.