For users wishing to ‘close off’ each month for accounting purposes, this would include invoicing off all the Service Work In Progress (WIP) jobs at the end of each month. However, sometimes this isn’t possible i.e. for restoration/long-term jobs.
There are five steps to the month end procedure for all service jobs still in progress as follows:
1. Create a new stage to each service job with a received date of the 1st of the following month;
2. Transfer the Labour, Stock Parts, Non Stock Parts, Stock Oils, Non Stock Oils and Extras of each job that cannot be invoiced at this point to its new stage (if nothing is to be invoiced, and all components are transferred to the new stage, go directly to step 4);
3. Print the invoice for ‘Stage 1’ (if applicable);
4. Change your ‘Sage Integration Date’, ‘Service Work in Progress From’ and ‘Parts Stock Adjustments’ dates to the 1st of the following month;
5. Users should not backdate any transactions within the DragonDMS prior to the new integration date
Ensure that all users are aware of the above steps to prevent transactions in the DragonDMS being backdated, and therefore not being posted through to Sage due the Sage Integration date being changed each month.
WIP Sage Postings
It is important to understand how the Service Work in Progress (WIP) transactions are posted from the DragonDMS to Sage 50 Accounts.
In this example, we have a test vehicle with registration ‘TESTCAR’ that was received into the workshop on 28 April 2015. We want to close off April’s accounts and move any WIP into the month of May. This existing service had been created and components added. Following a Sage Integration these transactions have already been posted to Sage, and are found under ‘Company > Financials’ based on Sage 50 Accounts Professional 2014 or under ‘Transactions’ in Sage 50 Accounts Professional 2015:
A Journal debit (JD) had been posted against nominal Code 1040 – work in progress and a Journal credit (JC) had been posted against nominal code 4599 – Service Invoice totals. Both transactions used the date of 28 April 2015 – the date the vehicle was received into the workshop.
Please note that the nominal codes shown above are based on the default nominal codes set by Dragon2000 for each transaction. If you are already using these nominal codes in Sage for other transactions, and therefore changed the default nominal codes, the nominal codes you have used for each transaction will be displayed instead.
As items are added/removed from the service and Sage Integrations performed, the net amounts of the WIP postings will change accordingly. In our example, on 29 April 2015 items were added to the service and another Sage Integration run. The net figures of the original WIP postings in Sage were then increased but it is important to note that the date will remain as the date the vehicle was received into the workshop (in our example, 28 April 2015) as shown below:
Step 1: Create a new stage
On the last day of the month, i.e. 30 April, you should invoice off as much of the service job as possible and transfer the remainder to a new ‘stage’.
To do this, open up the relevant Service Record and click the ‘New Stage’ button as shown below:
Step 2: Transfer the WIP that cannot be invoiced to the new stage
After clicking the ‘New Stage’ button a screen will appear where you can select which labour/components of the job to move to the next stage.
On each tab i.e. ‘Labour’, ‘Stock Parts’, ‘Non Stock Parts’, ‘Stock Oils’, ‘Non Stock Oils’ and ‘Extras’ highlight the relevant lines you wish to transfer to the next stage (‘Costs’ can be transferred but for WIP purposes, it is not necessary). You will notice the figures on the left will change:
Once you have highlighted all of the components you wish to transfer to the next stage, click ‘Close’ and the following message will appear:
Click ‘Yes’ and you will then be taken to Stage 2 of the service job.
The most important thing to do now is change the ‘Received into W/shop’ date to the 1st of the following month for the new stage, the 1st of May 2015 in our example.
Step 3: Print the invoice for ‘Stage 1’ (if applicable)
Click the dropdown box next to ‘Stage’ and select ‘1’ to go back to Stage 1.
You will now see that Stage 1 has the original date the vehicle was received into the workshop. Go to the Invoicing tab and ‘Print the Invoice’ for this stage as you would normally. After printing the invoice you will notice a box appears that lets you keep track of their the vehicle’s various Service Due dates.
The invoice will show the service number and then .01 so you know it is for Stage 1 of the service. Do not enter a ‘Date Collected’ date as you still have the vehicle on site.
After invoicing Stage 1 and then running another Sage Integration, the postings will appear in Sage as follows:
The first two entries are the original postings (JD against nominal code 1040 – work In progress and JC against nominal code 4599 – Service Invoice totals) dated 28 April 2015. The final two entries reverse the original entries by posting a JC against 1040 and a JD against 4599, both dated 30 April (the date the invoice was printed). In the ‘Details’ they are referred to as ‘Job 3.01’ being the service number (3) and the stage number (.01 = Stage 1).
There are also three invoice (SI) entries that have been posted, these are for the different components of the job i.e. Labour will post to one nominal, and Parts to another and there will be a separate entry for the tax element. Please note there will be more SI entries if you have added Oils and extras etc.
As Stage 2 has been created with the date of 1 May 2015, you will also have the following postings in Sage which relate to the WIP that was transferred from Stage 1:
As you can see, in the ‘Details’ the postings now refer to ‘Service 3.02’ being service number 3 and Stage 2 of the service. All work in progress that could not be invoiced has now been moved into the new accounting month in Sage (in our example, May).
Step 4: Change your Sage Integration date to the 1st of the following month
After invoicing off stages for your open service jobs and running the Sage Integration, you should now change your Sage Integration dates to the 1st of the following month.
To do this, in the DragonDMS go to Accounts > Setup and change the ‘Sage Integration Date’, ‘Service Work in Progress From’ and ‘Parts Stock Adjustments’ dates to the 1st of the following month.
Step 5: Users should not backdate any transactions prior to the new integration date
As mentioned above, it is important that all of your DragonDMS users are aware of this procedure to prevent transactions being backdated and therefore not posting through to Sage.
Differences in your WIP figures between Sage and DragonDMS? Find out why