Monitor Job Progress and Performance

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

As a job progresses, materials and resources are consumed and expenses incurred that must be posted to the job. In many cases, you might post expenses for a job before invoicing. But if only expenses have been posted, your financial statement is inaccurate. To track the actual value of the job, 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
  • Recognizable ocst
  • Percentage of completion
  • Completed contract

Create a job WIP method

Create a job WIP method that meets the needs of your organization 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.

  1. Choose the Lightbulb that opens the Tell Me feature. icon, enter job wip methods, then choose the related link.
  2. Choose the New action, and then fill in the fields as necessary. Hover over a field to read a short description.
  3. Close the page.
  4. To make this new method the default, choose the Lightbulb that opens the Tell Me feature. icon, enter jobs setup, then choose the related link.
  5. In the Default WIP Method field, choose the method from the list.

Define a WIP method for a job

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

  1. Choose the Lightbulb that opens the Tell Me feature. icon, enter jobs, then choose the related link.
  2. Choose the New action. Learn more at Create Jobs.
  3. On the Job 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 job task

You can define a WIP method for a job task, exclude some job tasks from WIP calcualtion, or group tasks to be calcualted together.

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

The WIP-Total specifies job 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 job tasks with WIP-Total set to Total, Total is set automatically on the last job task line when WIP is calculated for the first time.)

  • Has a Job Task No. number that's the final one in the group or range of job tasks.

The following table describes the three options:

Field Description
<blank> Leave blank if the job 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 job task with Job 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 Job Task Type of Posting, in which case the task isn't included when WIP and recognition are calculated.

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

Job task no. Description Job 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 job tasks. Note however, that two of the tasks, 1010 and 1110, are excluded from the WIP calculation because their job task type is Posting.

  • 1300 through 1399: WIP are calculated separately for this group of job tasks.

Calculate WIP

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

  1. Choose the Lightbulb that opens the Tell Me feature. icon, enter job calculate wip, then choose the related link.
  2. Choose the Calculate WIP action.
  3. On the Job Calculate WIP page, fill in the fields as necessary.
  4. Choose the OK button.

Note

The batch job only calculates the WIP, it does not post it to the general ledger. To post it, run the Post WIP to G/L batch job 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 Job Post WIP to G/L batch job to do this.

  1. Choose the Lightbulb that opens the Tell Me feature. icon, enter job post wip to g/l, then choose the related link.
  2. On the Job Post WIP to G/L page, fill in the fields as necessary.
  3. Choose the OK button.

Calculate and post job completion entries

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

  1. Choose the Lightbulb that opens the Tell Me feature. icon, enter jobs, then choose the related link.

  2. Select an open job, and then choose the Edit action.

  3. In the Status field, select Completed.

  4. Follow the assistance steps to calculate and post the WIP. Or follows steps 5 and 6 to do so manually.

  5. Choose the Calculate WIP action.

  6. On the Job Calculate WIP page, fill in the fields as necessary.

    The job WIP entries created by running the batch job will have the Job Complete check box selected to show that they are completion entries.

  7. Choose the Job Post WIP to G/L action.

  8. On the Job Post WIP to G/L page, fill in the fields as necessary.

    The job WIP general ledger entries created by running the batch job will have the Job Complete check box selected to show they are completion entries.

View job ledger entries

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

  1. Choose the Lightbulb that opens the Tell Me feature. icon, enter job registers, and choose the related link.
  2. Select a relevant register, and then choose Job Ledger action.

On the Job Ledger Entries page you can review the entries that are associated with any job.

See also

Walkthrough - Calculating Work in Process for a Job Managing Projects
Managing Inventory Costs
Finance
Purchasing
Sales
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