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WIP: Work in Progress in Project Accounting for NetSuite

If your organization is either on its NetSuite journey or beginning to evaluate ERP solutions, learn how NetSuite and Plative can help your organization with Work in Progress (WIP) or Construction in Progress (CIP) Accounting. 

Your team may have a project or installation component where you need to track project billing, tasks/milestones, work breakdown structure (WBS), resource allocation and skills, and more. You may also have item and inventory needs including warehouse management, pick/pack/ship functionality, item and/or service fulfillment, and even manufacturing needs. NetSuite can handle all these with out-of-the-box functionality. One feature that isn’t native to NetSuite is WIP or CIP Accounting.

NetSuite Project Accounting natively wants to recognize expenses immediately upon transaction generation such as when creating expenses and/or vendor bills. Your accounting rules may require you to defer revenue and expenses until the project phase or milestone is complete. This is often subject to the discretion of the project manager or lead accountant in your organization. Plative’s WIP Accounting for Projects allows your team to post material or labor expense transactions to a “WIP Account” on your General Ledger, so you defer expenses until the phased work is completed.

Once the project/phase is marked complete, the proper transactions can then be relieved from WIP and moved into their proper revenue/expense accounts. To increase efficiency, even more, the Plative team has built the ability to filter transactions by project to be able to audit and relieve the transactions in mass, within a dashboard.

NetSuite offers pre-bundled leading practices by industry and best-in-class platform capabilities, which allow you to mold the system to your liking, but like every ERP system, gaps in functionality can surface. Plative’s team of ERP and CRM experts have over a decade of experience implementing, remediating, and customizing NetSuite solutions. If you’re seeking an honest, reliable source to help implement or enhance your instance, don’t hesitate to reach out.

NetSuite

WIP: Work in Progress in Project Accounting for NetSuite

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