Monitor project progress and performance

Article
04/05/2024

With the work in process (WIP) feature you can estimate the financial value of ongoing projects in the general ledger.

As a project progresses, materials and resources are consumed and expenses incurred that must be posted to the project. In many cases, you might post expenses for a project before invoicing. But if only expenses have been posted, your financial statement is inaccurate. To track the actual value of the project, calculate WIP and post it to the general ledger. Learn more at Understanding WIP Methods.

You can calculate WIP based on the following:

Cost value
Sales value
Recognisable cost
Percentage of completion
Completed contract

Create a project WIP method

Create a project WIP method that meets the needs of your organisation and set it as the default.

Note

After you've used your new method to create WIP entries, you cannot modify or delete that method.

Choose the icon, enter project wip methods, then choose the related link.
Choose the New action, and then fill in the fields as necessary. Hover over a field to read a short description.
Close the page.
To make this new method the default, choose the icon, enter projects setup, then choose the related link.
In the Default WIP Method field, choose the method from the list.

Define a WIP method for a project

When you create a new project, you must specify which project WIP method applies. In some cases, the project WIP method you use is already set as the default.

Choose the icon, enter Projects, then choose the related link.
Choose the New action. Learn more at Create Projects.
On the Project Card page, 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.

Define a WIP method for a project task

You can define a WIP method for a project task, exclude project tasks from WIP calcualtion, or group tasks to be calculated together.

If you want to calculate WIP for each project task individually, WIP posting provides defined dimensions for the specific tasks.

The WIP-Total specifies project tasks you want to group together when calculating WIP and recognition. In any group of tasks, there needs to be one task that satisfies two conditions:

Has a WIP-Total set to Total. (If there are no project tasks with WIP-Total set to Total, Total is set automatically on the last project task line when WIP is calculated for the first time.)
Has a Project Task No. number that's the final one in the group or range of project tasks.

The following table describes the three options:

Field	Description
<blank>	Leave blank if the project task is part of a group of tasks.
Total	Defines the range or group of tasks included in the WIP and recognition calculation. Within the group, any project task with Project Task Type set to Posting is included in the WIP total, unless the task's WIP-Total field is set to Excluded.
Excluded	Applies only to a task with Project Task Type of Posting, in which case the task isn't included when WIP and recognition are calculated.

In the following example, project tasks are divided into two WIP total groupings, demonstrating how the WIP-Total field works:

Project task no.	Description	Project task type	WIP-Total field
1000	Preparation	Begin-Total	<blank>
1010	. Cleaning	Posting	Excluded
1099	Total preparation	End-Total	<blank>
1100	Carpeting	Begin-Total	<blank>
1110	. Gluing floor	Posting	Excluded
1120	. Laying out carpet	Posting	<blank>
1199	Total carpeting	End-Total	<blank>
1200	Finish	Begin-Total	<blank>
1210	. Vacuum cleaning carpet	Posting	<blank>
1299	Total finish	End-Total	Total
1300	Error correction	Begin-Total	<blank>
1310	. Error correction	Posting	<blank>
1399	Total error correction	End-Total	Total

You'll notice:

1000 through 1299: WIP are calculated separately for this group of project tasks. Note however, that two of the tasks, 1010 and 1110, are excluded from the WIP calculation because their project task type is Posting.
1300 through 1399: WIP are calculated separately for this group of project tasks.

Calculate WIP

You can determine the WIP amount to post to balance sheet accounts for the period end reporting. Use the Project Calculate WIP batch project to do this.

Choose the icon, enter project calculate wip, then choose the related link.
Choose the Calculate WIP action.
On the Project Calculate WIP page, fill in the fields as necessary.
Choose the OK button.

Note

The batch project only calculates the WIP, it does not post it to the general ledger. To post it, run the Post WIP to G/L batch project after you've calculated the WIP. Learn more in the following procedure.

Post WIP

When you've calculated WIP, you can post it to balance sheet accounts for the period end reporting. You use the Project Post WIP to G/L batch project to do this.

Choose the icon, enter Project Post WIP to G/L, then choose the related link.
On the Project Post WIP to G/L page, fill in the fields as necessary.
Choose the OK button.

Calculate and post project completion entries

When you have completed all activities for a project, including usage posting and invoicing, you must update the project's status to Completed. Then, you must reverse any WIP that has been posted to the general ledger.

Choose the icon, enter Projects, then choose the related link.
Select an open project, and then choose the Edit action.
In the Status field, select Completed.
Follow the assistance steps to calculate and post the WIP, or follow steps 5 and 6 to do so manually.
Choose the Calculate WIP action.
On the Project Calculate WIP page, fill in the fields as necessary.

The project WIP entries created by running the batch job will have the Project Complete checkbox selected to show that they are completion entries.
Choose the Post WIP to G/L action.
On the Project Post WIP to G/L page, fill in the fields as necessary.

The project WIP general ledger entries created by running the batch project will have the Project Complete checkbox selected to show they are completion entries.

View project ledger entries

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

Choose the icon, enter Project Registers, and choose the related link.
Select a relevant register, and then choose Project Ledger action.

On the Project Ledger Entries page you can review the entries that are associated with any project.