How Forecast 5 Manages the WIP Financial Lifecycle
Forecast 5 is a powerful forecasting and budgeting tool that offers two well-developed modules to monitor the development of stock for sale and its eventual sale:
Stock on Hand 🧾
Stock Made 🛠️
These modules track Work in Progress (WIP) on the balance sheet and, upon unit sale, transfer the relevant Cost of Sales to the Profit and Loss Account, showing Gross Profit from Sales. If required, Forecast 5 can also track the opening and closing stock through a Trading Account.
🏗️ From WIP to Fixed Asset Capitalisation
But what if the Work in Progress is destined to become a Fixed Asset upon commissioning? Forecast 5 handles this seamlessly:
🔹Create a WIP Record:
This record serves as the container for all component costs, including pre-commissioning interest and fundraising fees, if applicable.
🔹Track Costs Over Time:
Monitor the accumulation of costs within the WIP record, ensuring accurate tracking of all expenses.
🔹Transfer to Fixed Asset:
Upon completion (i.e., commissioning), the WIP record is transferred to a Fixed Asset record, where depreciation is applied at the required rate.
🔹Synchronise Transfer Dates:
By aligning the transfer date from WIP to Fixed Asset, Forecast 5 ensures no net cash movement occurs at capitalisation.
💰 Comprehensive Financial Tracking
Forecast 5 transforms the way organisations manage Work in Progress, providing complete visibility from initial costs through to asset capitalisation. By seamlessly integrating:
Profit and Loss Account 📈
Balance Sheet 🧾
Cashflow Report 💵
Funds Flow Statement 💡
This ensures every expense, every movement of stock, and every depreciation entry is accurately tracked and reflected. This level of insight empowers finance teams to make confident, informed decisions, reduce errors, and maintain the integrity of financial data across the entire asset lifecycle. With Forecast 5, managing complex WIP and capitalisation processes becomes not just easier—but strategically powerful.
