How to: Monitor Job Progress and Performance

As a job progresses, materials, resources, and other expenses are consumed and must be posted to the job. Work in Process (WIP) is a feature that enables you to estimate the financial value of jobs in the general ledger while the jobs are ongoing. In many cases, you might post expenses for a job before invoicing a job. When only expenses have been posted, your financial statement will be inaccurate. For more information, see Understanding WIP Methods.

To track the value in the general ledger, you can calculate WIP and post the value to the general ledger.

You can calculate WIP based on the following:

  • Cost Value
  • Sales Value
  • Recognisable Cost
  • Percentage of Completion
  • Completed Contract

If you want to view the result using a different method, you can change the method and calculate WIP again. There is no limit to the number of times that you calculate WIP. WIP is only calculated, it does not get posted to the general ledger. After you have calculated WIP, you can post to the general ledger.

To create a job WIP method

You can create a job WIP method that reflects the needs of your organisation. After you have created it, you can set it as the default job WIP calculation method that will be used in your organisation.

Note

After you have used your new method to create WIP entries, you cannot delete the method or modify it.

  1. Choose the Search for Page or Report icon, enter Job WIP Methods, and then choose the related link.
  2. Choose the New action, and then fill in the fields as necessary. Choose a field to read a short description of the field or link to more information.
  3. Close the window.
  4. To make this new method the default, choose the Search for Page or Report icon, enter Jobs Setup, and then choose the related link.
  5. In the Default WIP Method field, choose the method from the list.

To define a WIP method for a job

When you create a new job, you must specify which job WIP method that applies. In some cases, which Job WIP method that you can use has been set up for you as a default.

  1. Choose the Search for Page or Report icon, enter Jobs, and then choose the related link.
  2. Choose the New action. For more information, see How to: Create Jobs.
  3. In the Job Card window, in the WIP Method field, select a WIP method from the list. If a default method has been defined, you can select another option if needed.

To calculate WIP

You can determine the WIP amount that is to be posted to balance sheet accounts for the period end reporting. You use the Job Calculate WIP batch job to do this.

  1. Choose the Search for Page or Report icon, enter Job Calculate WIP, and then choose the related link.
  2. Choose the Calculate WIP action.
  3. In the Job Calculate WIP window, fill in the fields as necessary.
  4. Choose the OK button.
Note

The batch job only calculates the WIP. It is not posted to the general ledger. To do so, you must run the Post WIP to G/L batch job when you have calculated the WIP. For more information, see the following procedure.

To post WIP

When you have calculated WIP, you can post it to balance sheet accounts for the period end reporting. You use the Job Post WIP to G/L batch job to do this.

  1. Choose the Search for Page or Report icon, enter Job Post WIP to G/L, and then choose the related link.
  2. In the Job Post WIP to G/L window, fill in the fields as necessary.
  3. Choose the OK button.

To view job usage estimates and post updates

You can view job usage up to the completion of a project in one step. To do so, you use the Job Calc. Remaining Usage batch job for all the tasks up to and including the end of a job.

This lets you track and compare your original estimates against actual results and make modifications or new entries as needed. For example, you may have estimated that a job required 10 hours, and to date, it has taken 15 hours. You can add the extra five hours to the existing journal line or create a new journal line to report these five hours as overtime, which is another work type. The appropriate cost and price are calculated, and you can then post to the journal.

Note

Item entries create item ledger entries and reduce the inventory quantity. The Post Inventory Cost to G/L batch job transfers the cost from inventory to the general ledger. Resource entries create resource ledger entries.

  1. Choose the Search for Page or Report icon, enter Job Journals, and then choose the related link.
  2. Select a relevant job journal, and then choose the Calc. Remaining Usage action.
  3. In the Job Calc. Remaining Usage window, enter the document number and posting date that is to be inserted in the journal, and then choose the OK button.
  4. Update the journal with any modifications that may be needed.
  5. Choose the Post.

To view job ledger entries

All job-related entries are recorded in job registers and are numbered sequentially, starting with 1. From the job register, you can get an overview of all job ledger entries.

  1. Choose the Search for Page or Report icon, enter Job Registers, and then choose the related link.
  2. Select a relevant register, and then choose Job Ledger action.

In the Job Ledger Entries window you can review the entries that are associated with any job.

See Also

Managing Projects Managing Inventory Costs
Finance
Purchasing
Sales
Working with Financials