Set up work in progress (WIP) management

Set up WIP management in the Work in progress (WIP) management section in Configure Projects. The selections include the accounts used for your WIP schedules and a reconciliation method for over and underbilling amounts.

Subscription

Construction

Projects

Administration
Regional availability
  • Australia
  • Canada
  • United Kingdom
  • United States
User type

Business user with admin privileges
Permissions

Administration

  • Application subscriptions: List, View, Configure
Configuration

To use WIP management for an entity, the entity needs to have a fiscal year set up. You set up a fiscal year for an entity by specifying a First fiscal month for the entity on the Entity Information page. (Go to Company > Setup > Configuration > Entities. )

Learn more about setting up entities.

  1. Go to Projects > Setup > Configuration.

  2. Make your selections in the Work in progress (WIP) management section.

    The following table describes how the fields in that section affect your WIP schedules.

    You can't select the same GL account in multiple account fields.

    For example, if you select account 1200 in the Cost accounts field, you can't select account 1200 in any of the other account fields (like Revenue accounts).

WIP management section in Configure Projects field descriptions
Field Description

Include projects that have no job to date costs or billings

If this option is selected (which it is by default), WIP schedules include all projects that are set up to be included, even if they have no job to date costs or billings.

If you clear this option, WIP schedules exclude projects that have no job to date costs or billings.

When to auto-reverse WIP posting

Specify when to automatically reverse overbilling or underbilling posts.

Enable basing PM forecasts on primary forecast estimates

If this option is selected, by default WIP schedule projects that you add to WIP schedules are set up so you can base PM forecasts on the projects' primary forecast estimates. Selecting this option does not affect projects that are already included in WIP schedules.

For projects that use this option, values in the following fields in a WIP schedule can be calculated (by selecting Update PM forecasts based on primary forecast estimate):

  • PM forecast cost at completion

    For projects that have primary forecast estimates, the PM forecast cost at completion for each project is calculated based on estimate entries in the project's primary forecast estimate. Estimate entries are included if they have a workflow type of original, revision, or approved change.

    For projects that do not have primary forecast estimates, the PM forecast cost at completion is set to zero.

  • PM forecast cost to complete

    This is calculated based on the PM forecast cost at completion.

  • PM forecast pct complete (%)

    This is calculated based on the PM forecast cost at completion.

This option does not affect the PM forecast contract value.

You can enable or disable this option for projects individually on the WIP Schedule Projects page. Learn how to set up a project to enable basing PM forecasts on the project's primary forecast estimate.

Cost accounts

Select the cost accounts to use for totaling the job costs to date used in your WIP schedules.

Revenue accounts

Select the revenue accounts to use for totaling the billed to date amounts used in your WIP schedules.

Costs in excess of billings (underbilling) account

Select the account to use when posting underbilling amounts.

Offset account for costs in excess of billings

Select the account to use when posting adjustments for underbilling amounts.

This can be the same as the offset account for overbilling.

Billings in excess of costs (overbilling) account

Select the account to use when posting overbilling amounts.

Offset account for billings in excess of costs

Select the account to use when posting adjustments for overbilling amounts.

This can be the same as the offset account for underbilling.

Posting journal

Select the journal to use when posting WIP schedules.