Here’s an expanded and clarified explanation of Work in Progress (WIP) account code:


The Work in Progress (WIP) account code (You can configure the code in the Xero Setup - Accounts Section) in WebSAM functions as a temporary holding account for costs associated with purchase orders of non-stocked items. These purchase orders relate to procured parts or outwork for a specific job. 


When a purchase order is created (Please refer to the guide on how to create outwork or procured parts here) and finalised for a job in WebSAM, it is automatically coded to the WIP account in Xero. Once the job is invoiced, the associated amount is moved from the WIP account to the Cost of Sales (COS) account in Xero, completing the process.



Key Points:


  1. Temporary Nature of WIP in WebSAM
    • The WIP account in WebSAM serves as a short-term placeholder for job-related costs. It tracks costs until they are finalised and invoiced, at which point they transition to the COS account.
  2. WIP Balance in WebSAM vs. Xero
    • The WIP code used in WebSAM is specific to this process and may not match the WIP balance visible in Xero. This is because Xero aggregates WIP and COS differently depending on other transactions recorded in the system.
  3. Reporting
    • WebSAM does not generate a specific WIP report identical to the one available in Xero.
    • While reports can be pulled from Xero for WIP, there’s no need for WebSAM to offer the same level of reporting since both systems work in sync.
  4. Live Integration Between WebSAM and Xero
    • The integration between WebSAM and Xero is live, meaning that any actions you take in WebSAM—such as creating purchase orders or invoices—are immediately reflected in Xero. This eliminates the need for manual comparison or reconciliation between the two systems.
  5. Avoid Direct Changes in Xero
    • It’s important not to create or modify orders or invoices directly in Xero. Doing so can disrupt the live integration and cause discrepancies in the data between the two systems. All such actions should be performed in WebSAM to maintain accuracy and synchronization.
  6. WIP Valuation Report in WebSAM
    • The WIP Valuation Report in WebSAM provides a detailed breakdown of costs associated with each job, including:
      • Labour costs
      • Parts costs
      • Outwork costs

This report is designed to help you track and understand the costs of jobs before they are invoiced. Unlike Xero, the WebSAM report focuses on the valuation of Work in Progress (WIP) jobs, offering a comprehensive view of expenses rather than reflecting the total price of the job.

Key Details of the WebSAM WIP Valuation Report:

  • Purpose: It highlights specific costs incurred for individual jobs, giving you insights into the breakdown of expenses.
  • Differences from Xero: The report is not designed to mirror Xero’s reporting structure, as WebSAM focuses on job-specific details while Xero serves broader accounting purposes. Consequently, the total values between the two systems may differ.

By leveraging WebSAM's live integration with Xero and understanding the role of the WIP account, you can streamline operations without the need for manual adjustments or comparisons.


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