Execute Work in Progress

Explanation

Use this function to perform Work in Progress. Work in progress is defined as project transactions that are invoiceable (including delayed invoicing) but not yet invoiced. This means that accrued income for the time period between the registration date and the invoicing date of a transaction is handled. The purpose of this is to make it possible to include this accrued income in the follow up functions performed in IFS Financials.

The Work in Progress routine shouldnt be run until all invoicing for the period is finished.

Note that all univoiced invoiceable transactions even from closed projects will be included when performing Work in Progress. Also note that no consideration is taken to Max Invoice Amounts that are specified on the projects. Only projects that are marked for Work in Progress Revenue in the Project Details/Project PrePosting tab will be included. It is possible to enter an estimated value on the invoice plans to include them in the calculation for work in progress.

When you execute the Work in Progress function a background job is created in which the following will happen: All uninvoiced transactions, up until the end date, that are invoiceable will be recalculated to accounting currency as per the currency rate valid (in IFS/Accounting Rules) on the end date. The Estimated WiP Revenue Amount Currency from Invoicing Plans will be recalculated the same way. A voucher will be created with these values according to how Posting Control is set up, normally this should be posted as revenue and assets. 

Another voucher that reverses the first voucher will be created on the first day of the next accounting period. This voucher reverses the postings of the first voucher. The reason for this is to avoid double postings for the uninvoiced project transactions, as these might be invoiced during the coming period. Work in Progress is supposed to be run at each time the books are balanced and will then handle the current status as per the end of the accounting period.

Work in Progress uses standard posting control in Accounting Rules with the following posting types: PRJW1/PRJW2 WiP for Personal Cost transactions 
PRJW3/PRJW4 WiP for Non-Personal Cost transactions 
PRJW5/PRJW6 WiP for Project Time transactions 
Posting types with an odd number (PRJW1, 3 and 5) are posted to the debit column, these should be used with an asset account and posting types with an even number (PRJW2, 4 and 6) are posted to the credit column, these should be used with a revenue account.

If you need to rerun Work in Progress for a period there is a correction function. This should be used if Work in Progress has been created for a period and you then create new invoices or make changes to invoices or project transactions for this period. Since this means that the basis for Work in Progress is changed, you need to correct the current Work in Progress vouchers before you can run the routine again, otherwise you will get double Work in Progress vouchers. You only need to correct one of the vouchers, the other will be corrected at the same time.This creates a background job that creates two new vouchers, one reversing the postings of the original work in progress voucher and one reversing the corresponding work in progress voucher in the next period.

 

System Effects

As a result of this entry, Work in Progress vouchers are created in the Accounting Rules for the uninvoiced transactions.

Window

Create WiP Accounting

Related Window Descriptions

Create WiP Accounting

Procedure

  1. Finish all invoicing for the period.
  2. Estimate how much the uninvoiced invoicing plans are worth, enter this value in the Estimated WiP Revenue Amount Currency column or use the function to automatically calculate this.
  3. Start the Create Work in Progress Accounting routine.
  4. Enter an end date that will indicate the last date of the Work in Progress Accounting. All uninvoiced invoiceable (and delayed invoicing) transactions that are are registered on this date and earlier will be included. The chosen date will also be used as voucher date for the first voucher.
  5. Select a User Group and a corresponding Voucher Type.
  6. Select OK.