What is “Future Lot Work” account used for
“Future Lot Work” account
This account is used only in certain circumstances.
It was intended as an accrual account to record the credit posting side of unit cost adjustments that are added to units for 'expected costs'.
Example: there is a special component that is going to be installed into the unit but the part is on order and therefore service cannot complete the SO. However, Sales wants to close the deal and have it posted into the GL for month-end.
In this case, you would:
- Add the estimated cost of the SO to the unit as a cost adjustment and post it (by invoking the GL) to the Future Lot Work account
- Post the deal - ignore the warning about open SOs
- When the SO is closed it can only be done as a Charge on Account to the internal customer (choose “paid” as the status and it will then tell you that it must charge it on account since unit has been sold and posted)
- Then use the Customer Payment 'Adjustments' function in the AR Transactions screen to settle the internal AR posting and debit it against the Future lot work account
- Any difference between the original cost adjustment posting accrued and the final SO total should be expensed to the cost of goods sold account associated with the unit type sold on the deal.