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WIP & Accruals Window
- 11 Minutes to read
- Print
- DarkLight
The WIP & Accruals Window
Overview
This is the screen where the job data is loaded and the work in progress for the month is evaluated. In addition to selecting the WIP & Accruals settings to process your work,
- there are a number of columns that can be selected to view in the WIP & Accruals window
and use the filters on the left-hand side to select the jobs you wish to view
Set Columns
In addition to selecting the WIP & Accruals settings to process your work, there are a number of columns that can be selected to view in the WIP & Accruals window by right-clicking and selecting “set columns”:
The list of columns available is listed below.
Note: The first column is a fixed column - showing your tree list with clients, jobs and grouping. you are not able to change the first column. You may choose the contents of the other columns and display them in a sequence of your choice. |
Column Headings | Definition |
AC/ OC | Author’s Corrections / Our Corrections |
Accrual | accruals based on external costs of outstanding POs or implied costs on external kinds |
Amount quoted | Total value on accepted quotes |
Budgeted cost | Budgetted (internal and external) cost for the job- based on the accepted estimate |
Cost this month (inc oncosts) | Total in-house and external costs for the month |
Cost to date | All costs (total) incurred since the job began - up until and including the current period. |
Cost types | Displays type of cost eg timesheets, item charges, supplier invoices, general charges, no costs, external timesheets, outstanding POs |
Currency | Currency used |
Current external cost | supplier costs related to the current period's W&A process |
Current external value | value of supplier invoices related to the current period's W&A process |
Current in-house cost | cost of inhouse hours related to the current period's W&A process |
Current inhouse value | Total in-house value related to our current period’s W&A process (in-house portion of prior value + value this month) |
Ext cost to date | cost of supplier invoices to date |
Ext time cost | cost of external time to date |
Ext time value | value of external time to date |
External WIP cost | cost of external WIP made up of supplier invoices and payments (do not credit) |
External WIP value | Current WIP value (external); made up of Supplier Invoices + Markup, and Payments (don’t Credit) applied to a client job |
Future invoiced | client invoices issued after current period |
Future value | Total value in future periods - use this when status is *DEAD to make an informed decision on the job’s WIP values |
IH cost to date | cost of inhouse timesheets to date |
Income recognition | 'yes' indicates if income recognition applies to a job |
Inhouse WIP cost | Current WIP cost (in-house); cost of time sheets / items / general charges |
Inhouse WIP value | current value of (inhouse): timesheets, items and general charges |
Invoiced this month | Total billing this month; amounts invoiced in the current period |
Invoiced to date | Year to date invoiced |
Invoiced value | Current value billed to client; the invoiced value may be less than the Total Value. eg if we did $900 worth of work on a job, but billed $1200 as quoted |
Job Division | the division the job is linked to |
Job status | status of job |
Job/Kind | Fixed - the data is sorted by jobs |
Oncost to date | Total oncosts for Talent only: (super, W/C, payroll tax) up until and including the current period |
Outstanding POs | value of POs which are outstanding |
Phase | the phase on the job |
PO cost to date | Total PO amount for purchase orders dated on or before the end of the current period for a KIND code |
POs this month | Total PO for the month under review |
Pre Billings | Current pre billings; invoices not to be recognized yet in the Profit & Loss |
Prior cost | Past period costs which were brought forward |
Prior Value | Past value which was brought forwatd |
Reversals | Pre- billings in the prior period + any invoiced value related to prior period results +any invoice value related to past period expenses that have been reversed in the current period. |
Unbilled value | the difference between the value of work done and the amount invoiced |
Value this month | Total in-house and external value generated in the current period. |
Value to date | total in-house and external value generated to date |
WIP value | Current WIP value; both internal and external value; the value to the balance sheet to be billed |
Written off | WIP written off |
Written on | Current billings being written on (billings that are extra profit); Invoiced amount > Value generated. Only when the job is dead or complete |
Configure Filters
Filters are used to display groups of jobs for display - it makes the WIP review process easy.
A number of filters can be employed, by selecting the required information down the left-hand side of the window. Some are familiar. Others are new concepts. Once decided, these can be hidden (click on the Hide filter icon) to provide more working space with the WIP & Accruals window:
Select Jobs Lists
The default list is “All Jobs”.
Use the “From Job code” to “To Job code” to view a range of jobs.
When you click on the drop-down icon, you can select other job lists that have been “shared”. A useful option when you wish to review a list of sub-jobs and master jobs.
Include ticked jobs
When you have reviewed and “confirmed” some jobs, click on the “reload icon” to remove “confirmed ” jobs from the list.
However, if you still wish to view the “confirmed” jobs, tick the “include ticked jobs” option.
Job Division
If you have more than one division, it is practical to be able to view jobs for each division.
Job Types
Use this filter if you wish to view jobs grouped by job type.
TABS can be created to review selected job types eg retainers or media
Job Status
Use this filter to view jobs by “status” - this is used when TABS are created. It is easier to view jobs bt status - decision making is easier.
Cost Types
An example - if “No costs” is selected, this will include h=jobs on which no costs have been incurred (eg jobs invoiced up front)
Cost Types | Definition |
No Costs | If selected will include Jobs on which no costs have been incurred (eg Jobs invoiced upfront) |
Timesheets | If selected will include jobs which have inhouse timesheets |
Item charges | If selected will include jobs which have item charges |
General charges | If selected will include jobs which have general charges |
Supplier invoices | If selected will include jobs which have supplier invoices |
Establishment fee | If selected will include jobs which have establishment fees |
External Time sheets | If selected will display jobs which have external time sheets |
Outstanding POs | If selected will display jobs which have outstanding POs |
Bank Transfers | If selected will display jobs which have cost due to bank transfers |
Other | If selected will display jobs with other costs |
Includes
An example is when “include - No Values” is selected, it will include jobs on which no values have been incurred (eg a “do and charge” job where work has not started yet.
Legend
For ease of recognition, job information is didplayed as colour coded as follows:
Legend | Definition |
Amended | The information has been changed - it is not the original info which was calculated by JobBag |
Cancelled Job | A cancelled job appears where there may be implications such as writing off timesheet value |
Completed Job | A completed job appears where there maybe implications for outstanding POs and writing off timesheet value |
Dead Job | A dead job appears where there may implications such as writing off timesheet value |
No cost | Costs have not been incurred on the job |
Unchanged | This job is unchanged since the last time WIP & Accruals was run last month |
*- an asterist | has future period transactions |
Create TAB Sheets
Tabs can be set up for job types, divisions, etc.
An efficient way to review your jobs is to classify them by job status. Create TAB sheets for each job status - the process is similar to that of creating “sheets” in a spreadsheet. The recommended sequence of TABS is:
Proposed | It is worth reviewing this list of proposed jobs; Question to ask - how long has this job been proposed and how much time has been spent on these jobs - is it reasonable? | |
On Hold | Review this list - is the time spent on these jobs reasonable? will the value on these jobs be recovered | |
live | Start with live jobs; if you change the status of a “live” job to “complete” or “dead”, this job will be moved to either the “complete” TAB or the “dead” TAB - where you will be able to review it and “confirm” it. Questions to ask when reviewing “Live” jobs: When you compare value on the job to the Quote value, “are you within the budget? Do you expect a loss on this job?” and if yes, it may be prudent to do some write-offs. | |
Cancelled | Review this list - is the unbilled value excessive? | |
Complete | For example you are reviewing April WIP and you made a job complete. If the job does not have transactions after April, the job status will be 'Complete'. The question to ask “Can you make the job dead? If the answer is “no” - are you expecting some more timesheet costs or supplier costs? How will these extra costs impact on the job’s profits? Jobs cannot be classified as “dead” if there are outstanding POs. Ensure these outstanding POs are really outstanding i.e. supplier invoices have been received and processed - but the PO has not been updated | |
Complete* | For example, you are reviewing April WIP and you made a job complete in May. However, the job has transactions after April. Therefore, the status will be COMPLETE*. When the status is COMPLETE* - please review the impact of future transactions on the April WIP and make the appropriate adjustments for pre-billings, WIP etc. Please include the columns of “future invoiced” and “future value” when reviewing these jobs. The information in these two columns will give you an idea of the WIP adjustments you make to the job. The other option is to view the information on the 'financial' TAB | |
Dead | The job was made “dead” in the current period and all transactions are in the current period or past. Review the write-offs and 'write ons' on these jobs to ensure that these are reasonable. | |
Dead* | the * indicates the job was made dead in a future period and it has future dated transactions. Therefore JobBag will not classify the job as “dead” as at the end of the current period and amounts will remain in pre-billings, WIP, etc. Please include the columns of “future invoiced” and “future value” when reviewing these jobs. The information in these two columns will give you an idea of the WIP adjustments you make to the job. | |
Unconfirmed jobs | As you go thru the tabs starting with the “live” jobs TAB, in this TAB will appear Jobs that have not been confirmed yet. | |
Specific Jobs | Use this TAB to select and review one or more specific jobs. Refer to the screenshot below. Note the selection of “Specific Jobs” from the drop down list of jobs |
TABS can be used to review selected job types eg retainers, media or selected divisions.
Additional Operations (Top menu bar)
As the user works their way through the jobs, the following operations are available:
Hide filter | When the filter options have been selected, use this option to hide the filter options to provide more working space with the WIP&Accruals window |
Reload | while reviewing and “confirming” jobs, click on 'reload' to refresh the list - you then get a list of the remaining jobs which require 'review' |
Recalculate WIP | Runs teh automatic WIP logic which updates your WIP data with the latest information entered. Holding down the ALT key will reevaluate all W&A data. |
Click to access the screen to select reports | |
Settings | Click to access settings menu |
Additional Operations (bottom menu)
Change Default WIP Level Setting for a job
In the 'WIP and Accruals settings” screen, the WIP calculation basis is set for all jobs. The recommended setting is “By phase/category”
However, when reviewing a job, it may be necessary to view the WIP calculations at a more detailed level. Highlight the job and click on drop-down options.
Select a new WIP level from the drop-down list:
In this example, select “By phase/kind or node” and the following message appears. PLEASE READ IT SLOWLY. Click on “yes” to reset W&A decisions on the job.
The WIP level has been reset for this job.
Note: You can change the levels on this job anytime.
Reset WIP Calculations
Let's assume you have been reviewing a job and making changes to the amounts calculated by JobBag. After a while, you decide you would like to reset the job's WIP data to the original calculations.
You can click on the 'Reset“ tab.
There are three options.
Option 1 WIP data for highlighted data: “reset Job No ....”
Please slowly read this message slowly and answer carefully |
Option 2 Reset selected jobs
Create a list of jobs which you wish to reset
Select “Reset selected jobs”
Please slowly read this message slowly and answer carefully |
Option 3 Reset all jobs
When the following screen appears please be certain you wish to reset ALL jobs
Please slowly read this message slowly and answer carefully |
Apply to the GL
When the job's WIP has been reviewed and “confirmed”, click on “Apply to the GL”. You can apply to the GL, review the GL results, make amendments to the WIP data, and then reapply to the GL. This process can be repeated as many times until the data is rolled over into the new financial period.
When you click on “Apply to the GL” the following error message may appear. Follow up error messages and reapply to GL.
Revert
Highlight a job and click on 'Revert' to reset a job's date to the last confirmed state '
Confirm
When the WIP values on the job have been reviewed and amended (if required), you then “confirm” the job. This process tells the system that the values on the job are to be used to generate the GL entries. You can “confirm: and then “unconfirm” a job and make changes until the data is rolled over to the next period.
There are two ways to “confirm” the job.
Click on Confirm TAB
Tick 'Confirm' Option on Job line
History Log of Transactions
Transaction History of Job
Click on the job and click on 'transaction log'
The following history appears:
Transaction History at Kind level
Highlight the 'kind' and click on 'transaction log' to view the detailed history of WIP decisions made
The following history appears
Explain these figures
Click on the 'blue bubble” to find out more about the basis of calculations.
The following is an example of the calculation information.