Overview:

For a broader overview of Work in Progress (WIP), please see Work In Progress Overview (WIP) (WIP).

WIP Codes are created here, customised to your company's situation. You can create multiple codes if necessary to suit your requirements. Codes are then assigned to Jobs in Job Maintenance.

Screen Guide:

Initial Screen

The initial screen lists existing WIP Codes with basic information. To edit an existing code, click the WIP Code field, and to create a new one, click the + New WIP Code button.

Create/Edit View

• WIP Code is the unique identifier for this code, often correlating with the WIP Type field.
• Description is the longer descriptive text for this code.
• WIP Type allows selection from the following:

  • Earned Revenue: The unbilled value of work to date, based on costs incurred, marked up by the budgeted margin percentage for the contract, less invoicing to date.

  • Forecast Revenue: This method recognises the forecast final profit on a percent complete basis. This type relies on the Contract Forecast being done before WIP is generated, therefore a Job Contract must exist for the job as well.

  • Input Revenue: The unbilled value of work to date, priced at cost or retail (charge out). Used with Input Based jobs.

  • Output Revenue: The unbilled value of outputs to date, priced at schedule of rates. Used with Output Based jobs.

  • Input & Output Revenue: The unbilled value of inputs and outputs to date, priced at cost or retail (charge out) and the price of the Output Schedule rates. Used with Input and Output Based jobs.

  • At Finalised: No profit is recognised in the Profit & Loss Account until the Job is finalised (the finalised flag is checked in Job Details). When finalised, WIP is not generated for the Job, therefore leaving a Surplus/Deficit.   Finalised Date needs to be <= Period End Date.

• WIP Consolidation relates to the 5 levels of Job Hierarchy and at which level you want to consolidate to. Generally for Contract Reports where you are using Header and Sub Jobs you would consolidate to Level 1.
• WIP GL Account is the General Ledger Account for WIP integration. This is the CR (Adjustment to Revenue). It will pick up the rest of the string from the Jobs' Profit Centre. The Balance Sheet DR will come as a full string from the Financial Company WorkInProgress DR.
• Percent Complete is no longer used in the current version of Workbench.  It is retained as some clients still use an old version of the WIP process (prior to 2012).
• Profit Retention Percent is the percent of recognised profit from the WIP calculation that is retained, further reducing recognised profit. 
• Threshold Revenue Percent is the percent complete on a project that must be attained in the WIP calculation before profit is recognised. This calculation is based on actual costs compared with Forecast Final Cost or Budgeted Costs, depending on the WIP Type.
• Purchase Accrual Basis causes the WIP process to take into account PO accruals. The Generate PO Accruals process will need to be completed first. This process looks at the WIP Type for the basis of the PO Accrual.
  • None – Does not generate PO Accruals
  • PO Accrual – Accrue based on the Outstanding Value on the PO Lines or based on Outstanding Value if Receipted only.  (Control Parameter PO Accrual by Receipts = Yes/No)
  • AP Vouchers – Accrue AP Voucher Lines where an AP Invoice has not yet been generated. 
• WIP Amendment Method is not used in the current version of Workbench but is retained for backwards compatibility with the desktop client.
• WIP Justifications when ticked enable the following Contract Reports tabs: Contract Work In Progress and Contract Potential Gains/Loss. These are used by project managers to add explanations of WIP movements.
• Inactive makes this code unusable for future jobs. Existing jobs will need to be manually updated to a new code.

Next Steps:

After you have created your code(s), you can assign them to Jobs in Job Maintenance on the Billing and GL tab. Use the Generate WIP Accruals function at the end of each financial period.