The following diagram displays the cost flow associated with WIP transactions.

Valuation accounts are charged when material is issued to a job or schedule, or when resources, outside processing, or overhead are earned by a job or schedule. Valuation accounts are also relieved when assemblies are completed from a job or schedule. The following graphic displays that variance accounts are charged upon job or period close, depending on how the WIP (WIP) parameters are set (for repetitive schedules) or the type of job, asset, or expense.