Hello Matt,
I believe your production lot is not finished yet and the WIP clearing run has not been executed. Hence the WIP account is debited. Once the the production lot is completed, its work-in-process inventory is zeroed out by the work in process (WIP) clearing run.The WIP clearing run reduces the WIP inventory of completed production lots to zero, which adjusts the value of the work in process accordingly.
If you would have executed the WIP Clearing run before the Overhead Absorption Run,then material consumption account should have debited instead of WIP account.
You will have to refer to several help center document on Overhead Absorption and Production lot to understand the full process.Then you can try out different scenarios in the system.
1. Overhead Absorption by Production Lots
2. Calculation Bases for Overhead Absorption
3. Production Lots – Overhead Absorption Quick Guide
4. WIP Clearing Quick Guide
5. Valuation of Work in Process
It is always a good idea to start with the Help center document to understand the whole process.
Thanks
Parveen Kumar