Estimate Work In Progress for Uninvoiced Invoice Plans

Explanation

Use this function to make an estimate of the value (accrued income) of a plan. This is then used as basis for the Work in Progress voucher.

There are two ways to enter the value:

1. Type it manually.

2. Use the RMB function for Calculate WiP Value. It is still possible to edit the value after the function has been used.

The calculation that is done when using the RMB function for Calculate WiP Value is based on the Progress of the Project Activity on the Account Date. The Progress is compared to the Early Start (or Actual Start if it exists) and Early Finish of the Project Activity, this is then compared to the Invoice Plan Start Date and Planned/Actual Invoice Date columns of the Invoice Plan to give a percentage. This percentage is then multiplied with the Sales Amount of the Invoicing Plan. If an Actual Finish exists for the Project Activity then the value is set equal to the Sales Amount.

An example:

We have a Project Activity with a Progress of 50% as per 06/30/2001, the Actual Start is 01/01/2001 and Early Finish is 12/31/2001. There is an Invoicing Plan registered for USD 10,000, the Invoice Plan Start Date is 04/01/2001 and the Planned/Actual Invoice Date is 09/30/2001. When using the function with 06/30/2000 as Account Date we will get an Estimated WiP Revenue Amount Currency of USD 5,000.

If we instead have a Progress of 62.5% as per 06/30/2001 we will get an Estimated WiP Revenue Amount Currency of approximately USD 7,500. The reason for this is that it is assumed that the Progress is linear in the case of calculating the Estimated WiP Revenue Amount Currency. In this context work doesn't start on the Invoicing Plan until we have a Progress of 25% on the Activity, and when we have a Progress of 75% of the Activity we should be finished with the work for the Invoicing Plan. This works the other way around as well, if we have a Progress of 50% as per 07/31/2001 we will still only get an Estimated WiP Revenue Amount Currency of USD 5,000.

Prerequisites

The estimate for the plan should be made as per the date you are going to create the Work in Progress voucher for.

History Logging needs to be activated for the project before it is possible to use the RMB function for Calculate WiP Value. The function uses the Progress in the Project History of the Project Activity as basis for the calculation, so this should be updated before the function is used.

To use the RMB function Calculate WiP Value you also need to enter values for both the Invoice Plan Start Date and Planned/Actual Invoice Date columns of the Invoice Plan. The Project Activity also needs to have values for at least Early Start and Early Finish.

System Effects

As a result of this entry the value of the plan is included on the Work in Progress voucher when the function Create Work in Progress Accounting is used.

Window

Invoicing Plan

Related Window Descriptions

Invoicing Plan

Procedure

Manually

  1. Enter estimated values in the column Estimated WiP Revenue Amount Currency column for the plans you wish to include on the WiP voucher. Note that this should be entered in the sales currency of the plan. The value should be estimated as per the Account Date that will be used when running the Create Work in Progress Accounting function.
  2. Select Save.

With the RMB function Calculate WiP Value

  1. Update the Progress of the Project Activities.
  2. Make sure that History Logging has been activated and that correct data exists in Project History for the date you are going to run the function on. If no data exists in Project History for the date you run the function on then the latest entry prior to the chosen date will be used.
  3. Verify that the values for Invoice Plan Start Date and Planned/Actual Invoice Date columns of the Invoice Plan are correct.
  4. Verify that the Early Start, Early Finish, Actual Start and Actual Finish dates of the Project Activity are correct.
  5. Mark the rows in the Invoicing Plan window that you want to do the calculation for and choose the function Calculate WiP Value from the RMB menu. Choose the date for which the estimate should be done, this should be the Account Date that will be used when running the Create Work in Progress Accounting function.
  6. Verify that the created values seem correct and edit them if necessary.
  7. Select Save.