Hello everyone,
Recently, I have been tasked with implementing a WIP account for our manufacturing firm. To do this, I also created a Raw Materials and Finished Goods accounts under inventory assets.
I went through all our items that are used in the manufacturing process and changed the asset accoutns to Raw Materials, and the balance sheet updated to show this account.
When I did the same for the Finished Goods account, it came out as a negative value. This however makes no sense to me, as our inventory asset account should go up since we made an item? Can someone please elaborate on this? All of the items I changed are inventory assemblies so maybe that has something to do with it?
Any help would be appriciated.
