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Within the Time
Ledger Negative WIP postings can be displayed as credit postings on a
clients account. For example, if a client has a negative WIP balance of
£-300 this can be shown as credit postings totalling of £300.
Negative WIP balances can be displayed as either
unabsorbed or credit postings,
as selected from the unabsorbed tab
on the Time Ledger options.
A client may have a negative WIP posting when an invoice or write off has been posted to remove more WIP than currently on a clients balance.
For example, client A001 has a current WIP balance of £300. The partners decide to invoice the client £500 and write out £400, to show that the practice has made a £100 profit.
Posting a write out to £400 will reduce the clients WIP balance (of £300) by £400, leaving the client with a negative WIP balance of £100. When the option to display negative WIP balances as credit postings is selected a credit posting for £100 will appear on the clients account.
To remove a negative WIP balance when the credit postings option is selected:
Post a general adjustment to the same value as the negative WIP balance. For example, if a client has a negative WIP balance of £100, post a debit general adjustment for £100 to return the account to zero.
Use the remove credit WIP utility. This is often used by practices that wish to amend the recovery on an invoice.
This option is only available if Generate initial write out credit for full amount is selected.
As WIP is posted to the client account, any credits on that account which are a result of invoice posted as described above will be matched.
No WIP will be matched
on the client account to the credit posting generated when the invoice
is posted. Any matching can be completed manually as and when required.
WIP reports will show the credits as current WIP until they are matched.
It is recommended that Automatically match off write out credit to new WIP as it is posted is selected, if you do not wish to manually match negative WIP.