WIP Process Evaluating Prebilled Jobs

Where you have pre-billings being calculated automatically, JobBag compares the amount that has been invoiced to the client against the value that has been generated - each kind on every job is evaluated in turn, hence it is important to get value recorded against the kinds that are being invoiced.

Where your WIP Settings for Income Recognition is set up like this:

Every job where the status is Proposed, Live or On Hold will be evaluated according to whether the Billings on each kind exceed the value generated on the kind. Where the billings exceed value, Pre-billings will be automatically calculated. Where Value exceeds Billings, there will not be a Pre-billing amount.

e.g. Invoiced this month $20,000

Value this month $8,000
Pre-billings $12,000

This pre-billing amount ($12,000) will be carried over to next month. e.g. Pre-billings last month $12,000

Invoiced this month $0
Value this month $8,000
Pre-billings this month $4,000

If we also invoice more to the client, this is added to any prior billings: e.g. Pre-billings last month $4,000

Invoiced this month $10,000
Total “billings $14,000
Value this month $12,000
Pre-billings this month $2,000

Issues where Value recorded on one kind and billings on another You may come across situations where Kind A is invoiced to the client, but Kind B has got some or all of the value on it.

Kind Invoiced Value Pre-billings WIP Write-on Write off
Concpet 10,000 2,000 8,000
Design 0 6,000 0 6,000

The way you should adjust this is to remove the WIP and reduce the Pre-billings by the same amount:

Kind Invoiced Value Pre-billings WIP Write-on Write off
Concpet 10,000 2,000 2,000 6,000
Design 0 6,000 0 0 6,000

The net result for the whole job is you are carrying over $2,000 in pre-billings to next month, you have a “write-on” on Concept, a “write-off” on Design but overall they offset each other. You will correctly report $8,000 as revenue in the P&L.