Hi Ajay,
Thank you so much for help.. Actually the WIP has been setup already for service orders in our company hence I would like to understand the logic behind its posting..
I am a bit lost with this statement:
"This means the debit posted to P&L on acount of expenses is nuliffied with credit posted upon WIP."
-- As i understand in the previous statement before this, during WIP, the debit is in Balance sheet GL and credit a P&L GL, right?..
Let say I have 500 worth of WIP in the first month.
the posting will be
BS account = 500
P&L account = -500
is that right?
and next month if service orders is completed, both postings in BS and P&L will be reversed?
PLease advise..
Thank you in advance...