QuickBooks – Work in Process

The work in process (WIP) asset account records the pre-publication expenses incurred prior to a book’s publication. These costs may include cover design, layout, copyediting and proofreading expenses.

We recommend that publishers using QuickBooks create a WIP sub-account for each title in production.  The first two digits indicate that this is a WIP account, the next two digits show the estimated publication year and the last two digits specify the title.

When a book is published you credit the work in process asset account and debit the plant costs asset account. Plant costs are amortized over time.

14000 Plant Costs

15000 Work in Process

…………151201 WIP 2012 – Horse Training
…………151202 WIP 2012 – Cats 101
…………151301 WIP 2013 – Alligators
…………151302 WIP 2013 – Horned Toads 101

To automate the amortization process, create the journal entry for the first month, then right click the entry and create a memorized transaction to repeat the entry for the next X months.