WIP Process – Evaluating Pre-Billed Jobs(New)

WIP Process – Evaluating Pre-Billed Jobs

When Pre-Billings are calculated automatically, JobBag evaluates each Kind on every job:

• It compares the amount invoiced to the client against the value generated on the job.
• Accurate value recording per Kind is essential for correct WIP and Pre-Billing calculations.

How Pre-Billings Are Calculated

With WIP Settings for Income Recognition set to automatic:

1. Job status is checked:
   • Proposed
   • Live
   • On Hold
2. JobBag evaluates each Kind:

Example 1 – Basic Pre-Billing

• Invoiced this month: $20,000
• Value generated this month: $8,000

Pre-Billings: $20,000 − $8,000 = $12,000

This $12,000 will be carried over to the next month.

Example 2 – Carrying Over Pre-Billings

• Pre-Billings last month: $12,000
• Invoiced this month: $0
• Value generated this month: $8,000

Pre-Billings this month: $12,000 − $8,000 = $4,000

Example 3 – Adding New Invoice to Existing Pre-Billings

• Pre-Billings last month: $4,000
• Invoiced this month: $10,000
• Value generated this month: $12,000

Total billings to date: $4,000 + $10,000 = $14,000

Pre-Billings this month: $14,000 − $12,000 = $2,000

Handling Value Recorded on the Wrong Kind

Sometimes, value and billings are recorded on different Kinds:

Adjustment Steps:

1. Reduce WIP on the Kind where value was incorrectly recorded.
2. Reduce Pre-Billings on the Kind where it is overstated.

After adjustment:

Net Result:

• Pre-Billings carried over: $2,000
• Write-on (Concept) and Write-off (Design) offset each other
• Revenue correctly reported in P&L: $8,000

✅ Key Takeaways

• Always record value against the same Kind as the invoice.
• Adjust WIP and Pre-Billings if billings and value are misaligned.
• Pre-Billings carry forward until work is completed or billed.
• Write-on / Write-off adjustments do not affect total revenue; they ensure correct allocation per Kind.