Work In Progress

this is from accountingunplugged.com and describes one way of handling your situation


One problem for you, of course, is that sales orders are not financial transactions that affect the balance of any account. I think of them as interim records that can later be converted into actual sales invoices. But they don’t help with tracking work in progress. They are static and do not currently have any connection with other transactions or accounts in Manager.

A project accounting module has been mentioned as a future improvement, but there really isn’t anything built in right now.

Thanks for the information
This is simple the problem is how to show it in Manager

Tut Thanks
and I understand what you are saying
My problem is that I have an order which is a basically acceptance of the Quotation based on the acceptance I start purchasing equipment and since than I can deliver this on an invoice, but I also have a work to be done based on the accepted quotation so I will invoice it later
This is basically the same as billable time, and what is a billable time this is the time someone from company have spent but did not invoice it yet, this is the same scenario, the billable time is for some accepted quotation isn’t it?
Unless I understand this in completely different way

If I understand your brief explanation, @jacekm, you are correct. For billable time, the account Billable time - movement is work in progress. (In fact, for my own business, I have renamed it that way.) It recognizes the revenue at the moment the time is entered. The value of the work in progress gets transferred to another income account when you invoice. I got the impression, however, from your first post that you wanted to be able to track work in progress other than just billable time.

This subject has been discussed on the forum quite a bit. See, for example: Pre-invoice.

A search on “work in progress” turns up many topics.

@jacekm please read this topic Managing Sales and Purchases Orders (Advanced Features Request/Suggestion) , are you wishing for progress sales and purchase invoicing?

Thanks @Abeiku this is exactly what I’m also looking for and see there is no really way to create it
I will still check the ability of the Bilable time structure and see what I can come up with
I will let you know

Hi @Tut
thanks for the link but this is not entirely true what we do
let me explain in detail how the process goes
first we would present a complete Quotation for let say 100,000
and such will be split int 3 to 4 segmants

  1. Design
  2. Manufacturing
  3. installation
  4. Commissioning
    than we will receive an Sales Order from the original Quote for sub 1
    after the sub 1 is accepted by the client we would present 1 or sometimes 2 invoices
    then while the design is at 80% done we would get an Sales Order for sub 2
    usually we will provide an Sales invoice for 50% of the total of sub 2 at the beginning than as it progress goes and the manufacturing is in about 80% done we would raise an Invoice for another 20% of sub 2, and finally after the Factory testing and delivery we would raise the invoice for the additional 20% from Sub 2 leaving 10% of sub 2 till the finish and final acceptance
    at the moment the Manufacturing is done in 90% we would get a Sales Order for sub 3 (Installation), than after installation is done on site we would raise Sales Invoice for the installation, sometimes we would raise 2 invoices all is dependent of the time taken, usually at the same time we would receive the Sales Order for sub 4
    After we finish with sub 4 and the client have signed the acceptance we would create final invoices for all the outstanding
    as you can see the whole process this would be good to have as there are many items involved in the process. Besides this the Sales Order is treated as a commitment of the client to pay for the amounts on order. The client can cancel the Sales Order but he will be held liable for the progress of a specific Order
    So that’s the situation which I’m in and need to ask if there is anyway to track it in the Manager
    Like I have said the Billable Time is good but gives me one problem I can not change the description of the units to be displayed on the Invoice, but also prevents me from adding the Production Orders to the mix

@jacekm, I did not say the link I provided addressed your desire. I gave it only as an example of previous discussions of work in progress on the forum. Your situation is not unique, but is not easily handled by Manager. I just wanted you to know you are not the first to bring it up.

I have used before a special account but the problem with it is that you have to create a starting Balance and as such this balance can later be debited
as I see in the new software V18.4.55 even I create the new special account I can not give a starting balance for the new account
It would be good if I could link the Sales Order to the special account than my problems would be over

Starting balances are not for projects you undertake after operations under Manager begin. They are only for transition from prior accounting systems. If you start entering starting balances for projects, you will totally ruin your balance sheet.

Your version is about 100 updates behind. You can enter starting balances for special accounts. But as stated above, that is not the solution to your problem.

I don’t understand what you mean by this. Link how?

Hi @Tut
What I mean is
if on the Sales order would be a possibility to select an Account than the problem would be over
When I receive Confirmation and acceptance of the Quote and create the Sales order and would be able to select the Special Account (if Needed) titled Work In Progress than I would credit this special account, later when I create the Invoice I would debit this account
at least I think this should work

You cannot select accounts on sales orders because they are not financial transactions. You need to give up the idea that sales orders can be used for what you want. They are only a convenient way of recording incoming orders. I have understood what you want from the beginning. Currently, Manager won’t do it. And the changes necessary to make it happen are large. It is not a matter of just allowing you to select an account.

@jacekm, this may sound a bit simplistic but it appears that your Sub 1, 3 & 4 are labour orientated so Billable Time could suffice there albeit with some limitations.

For Sub 2, you could use Production Orders with the “Finished Goods” being allocated to an Inventory Item which has a “Work-in progress” custom control account. This would separate the manufactured items from the normal Inventory Items. Then when you invoice those items, the work in progress account would decrease.

Hi @Brucanna
This idea seems very good
Tell me if possible where I can find this allocation for SUB 2 which you are proposing

Go to Settings > Chart of Accounts and create an Assets account called Work-in-progress and tick Control Account and select made up of Inventory Items.

Then go and Edit your “finished goods” Inventory Item and select the Control Account as Work-in-progress.

Great

Hi @Brucanna
Thanks for the tip
I have tested the concept and I see it does not really work
The Work in progress shows the Cost amount and not the sales price
than when you invoice the fraction of it it process it
Tell me how to put a sales price in this field
If I invoice than the fraction of the price than it shows correctly on Invoice and produces the correct cost of the inventory for the invoiced part
The main problem so far is the incorrect display on the Work in Progress

Hi @Abeiku
So far it does not work

And that is correct, the Work-in-progress account never includes any factor of income / profit.
The Work-in-progress account value gets transferred to the P&L Cost of goods sold. The sales price gets posted to the P&L income.

If you want to invoice the Sub 2 in proportions, then enter those proportions on the respective sales invoices, and the Work-in-progress will reduce accordingly.

Perhaps if you want to put relative values to the factors, then we can work through the mechanics.