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WIP Method
WIP is generally based on cost, which is mostly followed in North American business processes. Due to other international practices, WIP may have to be calculated based on billings.
System Options
The System Options > Forecast tab has an option for WIP method selection. The drop-down list allows users to set the WIP based on either cost or billing. The default value is cost, which is defined in the WP column definitions.
Pgm: SYSOPT – System Options; standard Treeview Path: System Data > Setup > System Options
During implementation, as required, users may set this option either way as “WIP Based on Cost or Billings”. This is a one time setting, and normally not updated by users.
Calculations
The following are the calculations when “WIP based on Billings” is set in System Options.
|
Sl.No |
JC WIP Column |
Calculations Default system calculations that cannot be overridden by users |
JC WIP Column |
Calculations with Overrides System calculations that can be overridden by users |
|---|---|---|---|---|
|
1 |
%Complete |
Billed / Contract |
%Complete Override |
Billed / Contract Override |
|
2 |
Projected Profit |
Contract – Cost Budget |
Projected Profit Override |
Contract Override – Projected Cost Override |
|
3 |
Earned Revenue |
% Complete * Cost Budget |
Earned Revenue Override |
% Complete Override * Projected Cost Override |
|
4 |
Over / Under |
Earned Revenue – Spent Cost |
Over / Under |
Earned Revenue Override – Spent Cost |