Monitor project progress and performance

Artigo
08/22/2024

The work in process (WIP) feature lets you estimate the financial value of ongoing projects in the general ledger.

As a project progresses, materials and resources are consumed and expenses incurred that you must post to the project. In many cases, you might post expenses for a project before invoicing. But if you only post expenses, your financial statement is inaccurate. To track the actual value of the project, calculate WIP and post it to the general ledger. The following are the standard WIP methods:

Cost value
Sales value
Recognizable cost
Percentage of completion
Completed contract

You can also create a WIP method that meets the needs of your organization and set it as the default. Learn more at Understanding WIP Methods.

If you want to view the result using a different method, change the method and recalculate WIP. You can recalculate WIP as often as you like. The value isn't automatically posted to the general ledger. After you calculate WIP using the method you prefer, you can post to the general ledger.

Choose the icon, enter Project WIP Methods, then choose the related link.
Choose the New action, and then fill in the fields as necessary. Hover over a field to read a short description.
Close the page.
To make this new method the default, choose the icon, enter Projects Setup, then choose the related link.
In the Default WIP Method field, choose the method from the list.

Define a WIP method for a project

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

Choose the icon, enter Projects, then choose the related link.
Choose the New action. Learn more at Create Projects.
On the Project Card page, in the WIP Method field from the Posting FastTab, select a WIP method from the list. If a default method is defined, you can select another option if needed.

Define a WIP method for a project task

You can define a WIP method for a project task, exclude project tasks from WIP calculation, or group tasks to be calculated together.

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

The WIP-Total specifies project 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:

WIP-Total is set to Total. If there are no project tasks with WIP-Total set to Total, Total is set automatically on the last project task line when WIP is calculated for the first time.
The number in the Project Task No. field is the final one in the group or range of project tasks.

The following table describes the options:

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

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

Project task no.	Description	Project 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 notice:

For 1000 through 1299, WIP is calculated separately for this group of project tasks. Note, however, that two of the tasks, 1010 and 1110, are excluded from the WIP calculation because their project task type is Posting.
For 1300 through 1399, WIP is calculated separately for this group of project tasks.

Calculate WIP

You can determine the WIP amount to post to balance sheet accounts for the period end reporting by using the Project Calculate WIP batch job.

Choose the icon, enter Project Calculate WIP, then choose the related link.
Choose the Calculate WIP action.
On the Project Calculate WIP page, fill in the fields as necessary.
Choose the OK button.

Note

The batch job only calculates the WIP, it doesn't post it to the general ledger. To post WIP, run the Post WIP to G/L batch job after you've calculated the WIP. Learn more in the following procedure.

Review warnings

If your WIP calculation results in a WIP was calculated with warnings message, you might want to review the warnings.

Choose the icon, enter Project WIP Cockpit, and then choose the related link.
Select the project for which you want to review warnings. The WIP Warnings toggle is enabled for projects that have WIP warnings.
Choose the Show Warning action.

Delete WIP entries

If you want to try different WIP methods, you might get a The Project Task cannot be modified because the project has associated project WIP entries error. To be able to check WIP method, delete existing WIP entries.

Choose the icon, enter Project WIP Cockpit, and then choose the related link.
Select the project for which you want to delete WIP entries.
Choose the Delete WIP Entries action.

Post WIP

When you calculate WIP, you can post it to balance sheet accounts for the period end reporting. Use the Project Post WIP to G/L batch job.

Choose the icon, enter Project Post WIP to G/L, and then choose the related link.
On the Project Post WIP to G/L page, fill in the fields as necessary.
Choose the OK button.

Calculate and post project completion entries

After you complete all activities for a project, including posting usage and invoicing, you must update the project's status to Completed. Then, you must reverse any WIP that was posted to the general ledger.

Choose the icon, enter Projects, then choose the related link.
Select an open project, and then choose the Edit action.
On the Posting FastTab, in the Status field, select Completed.
Follow the assistance steps to calculate and post the WIP, or follow steps 5 and 6 to do so manually.
Choose the Calculate WIP action.
On the Project Calculate WIP page, fill in the fields as necessary.

The project WIP entries created by running the batch job have the Project Complete checkbox selected to show that they're completion entries.
Choose the Post WIP to G/L action.
On the Project Post WIP to G/L page, fill in the fields as necessary.

The project WIP general ledger entries created by running the batch project have the Project Complete checkbox selected to show that they're completion entries.

View project ledger entries

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

Choose the icon, enter Project Registers, and choose the related link.
Select a relevant register, and then choose Project Ledger action.

On the Project Ledger Entries page, you can review the entries that are associated with any project.

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