agMIS                Work-in-process accounting

'Work in process' is an accounting term for the aggregate value of all resources invested in unfinished products or production, as of that date, usually the date of a balance sheet.  In theory, it's an account for accumulating costs as they're incurred until 'harvest', at which time it's balance is moved to 'finished goods' as their true actual cost to produce.

In today's world, however -- thanks to standard cost methods, computers, management systems and more -- modern businesses forego the laborious tasks of 'work in process' debit and credit accounting.

This is a portion of one of many agMIS 'cost of production' report types that can be prepared anytime.  The report has other uses, too, but notice how quick and easy it would be for a knowledgeable person -- including a non-accountant -- to extract and support a 'work-in-process' amount, as needed.

Important note:

Unlike farm cost accounting programs, every amount on every agMIS report, is derived directly from user transaction entries.  At no time nor place, ever, does the agMIS system make accounting 'decisions' or create accounting 'entries'.

(c) Copyright 1998-2008 -- T. Murphy Associates