The purpose of this user’s guide is to outline The Way (our suggested workflow) for utilizing the Work In Progress (WIP) feature in the Accounting module in Workamajig.
Posting Work In Progress (WIP)
If you are setup to post WIP in Workamajig, that means that you have already setup your default WIP posting accounts in your GL Tracking Options menu and you are ready to post WIP at the end of every month. When WIP is posted to the General Ledger, the system looks at transactions in your billable projects only and posts GL entries into the specified WIP accounts (from your GL Tracking Options menu). Transactions for non-billable projects are excluded from WIP posting as Work In Progress is solely based on the total amount of your billable transactions.
WIP should be posted on a Monthly basis and should be one of the final things performed prior to running your monthly financial statements. So your workflow is the following:
- Approve all Time, Expense Reports and Vendor Invoices for the period
- Bill/Mark Billed/Mark Write Off All Transactions for the period
- Post all Client Invoices and Vendor Invoices
- You are now ready to Post WIP
WIP is posted based on the following:
- If the transaction is unbilled and has not yet been posted into WIP, it will be posted to the specified WIP accounts.
- If the transaction was posted into WIP and is now billed, marked as billed or marked as Write Off then it will post OUT of the specified WIP accounts. NOTE: Transactions marked as Write Off will be posted out of WIP, and at the same time, they will also be posted to the designated Write Off account.
- Transactions that were not posted into WIP previously and were billed or marked as billed before you post WIP will be excluded from the WIP posting. NOTE: Transactions marked as Write Off before WIP posting will be posted to the designated Write Off accounts during the next WIP posting.
To Post Work In Progress go to Workamajig > Accounting > Today-Accounting> Items Needing Attention: Post Work In Progress:
- Click on Post Work In Progress
- Select the Posting Date
- Select the Transactions Through Date
- Enter a Posting Comment
- Click POST
Once you have posted, the batch will appear to the right under the Posted Batches. To see detail of what was posted click on the Batch line.
This will open the line. Click View Detail.
The Posting Details will be grouped into the following categories
- WIP LABOR IN: Unbilled and Approved Time entries
- WIP LABOR OUT: Labor that was billed in the period after a previous WIP Batch posting.
- WIP LABOR MB: Labor that was Marked as Billed in the period after a previous WIP Batch posting.
- WIP LABOR IN/WO: Labor that was marked Write Off in the period after a previous WIP Batch posting
- WIP MISC COST IN: Unbilled Misc Costs
- WIP MISC COST OUT: Misc Cost that was billed in the period after a previous WIP Batch posting.
- WIP MISC COST MB: Misc Cost that was Marked as Billed in the period after a previous WIP Batch posting.
- WIP MISC COST IN/WO: Misc Cost that was marked Write Off in the period after a previous WIP Batch posting
- WIP VOUCHER IN: Unbilled and Approved Vendor invoice
- WIP VOUCHER OUT: Vendor invoice that was billed in the period after a previous WIP Batch posting.
- WIP VOUCHER MB: Vendor invoice that was Marked as Billed in the period after a previous WIP Batch posting.
- WIP VOUCHER IN/WO: Vendor invoice that was marked Write Off in the period after a previous WIP Batch posting
The system will search through all transactions and find the ones that occurred through the “Through Date” you entered. The posting entry will be made as of the Posting Date you entered.
See below for a chart that demonstrates what occurs when Posting Work In Progress:
A good report to run to help you tie out your WIP balances to your GL balances is the WIP Analysis Report. It is recommended that you run this report at month end after posting. Go to Menu > Everyone > Report Center > Financial Reports > WIP Analysis:
This report shows WIP balances across each Project in detail.
NOTE: This report is only useful to you if you have selected to Track WIP in GL in your GL Tracking Options menu, and if you have setup your default WIP posting accounts and you are actively posting WIP at month end.
Enter an As Of Date and then enter a Company, Office, Client, AM and your Grouping Options if applicable. Select Refresh at the top left corner of the report screen to run the report on screen.
Labor: All Labor Transactions from Billable Projects
Production Expense: All Items setup via Purchasing:Purchase Items and contained in a Vendor Voucher
Other Expenses: All Items setup via Purchasing:Expense Report Items contained in a Vendor Voucher and Misc Costs
Media Expense: All Items setup via Media: Broadcast Items/Print Items
NOTE: Creating Vouchers not connected to orders: when selecting an item, please be aware that you are able to select Purchase Items, Expense Report Items and Media Items from the drop down menu. Even if contained on the same Voucher, the amounts will be sorted according to the categories as noted above.
Select the Project Details tab to see the WIP balances across each project.
By clicking on the bold data in the report you can drill down to see the details of each unbilled amount:
Typical Month End Process for WIP
Our recommendation is to run these standard reports at month end:
- Balance Sheet
- Corp P&L
- AR Aging to tie to the balance sheet
- AP Aging to tie to the balance sheet
- WIP Analysis to tie to the balance sheet if they are posting WIP
- Account Rec and print to see that bank to book balance is correct.