WIP & Accruals Window
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    WIP & Accruals Window

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    Article summary

    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.

    Print

    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.


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