🧠 Purpose
The purpose of this article is to understand more about what a Construction WIP (Work in Progress) adjustment is and learn how to make one.
Let's dive in!
What is a Construction WIP Adjustment?
A Construction WIP Adjustment is a process to adjust the Profitability and Projected Costs to Complete on the Job Dashboard. This process gives the Project Managers a better view of where their project is at and what the revised Gross Margin and the project might be after reviewing costs.
This adjustment will only adjust the numbers on the Job Dashboard and will not affect the individual work tickets as they will remain as estimated, including any change orders.
Prior to doing any Construction WIP Adjustments your Job Dashboard may look like this:
📌 Note: The Estimated Cost and the Projected Cost to Complete are the same.
After you have done a Construction WIP Adjustment your Job Dashboard may look like this:
📌 Note: The Estimated Cost and the Projected Cost to Complete are no longer the same, and the Gross Profit has been adjusted on the Job Dashboard.
How to make a Construction WIP Adjustment
Make sure that the end date of the opportunity in question is not in the past (you will not be able to find the Opportunity in the Construction WIP Adjustment List if the End Date is in the past).
Go to the Reports Module ➡️ Standard Reports, then under the Production category, click Construction WIP Adjustments.
3. Find your Opportunity in the List, for this document we are using Opportunity #6837.
4. Find the 3 dot menu on the right side of the opportunity and select Edit Cost to Complete.
5. Clicking Edit Cost to Complete will bring you to a work ticket list of all of the work tickets associated with this opportunity. For this example, the opportunity only has one work ticket.
6. Go to the Cost to Complete field on the Work Ticket that will be adjusted, this ticket shows the Cost to Complete as $4,512.00, and we are going to adjust it to $3,500.00.
7. Confirm your changes!
8. Click Save.
You have now adjusted the cost to complete on this opportunity!
You can review your changes by returning to the Job Dashboard for the Opportunity. The Projected Cost to Complete is now $3500.00, the Projected Profit is $1,651.45 and Projected Gross Margin is 32.06%.
Please note that the original Estimated Cost has remained the same so that you may review how the Opportunity is flowing over time.
📌 Note: The changes made through the Construction WIP Adjustment will not affect the Work In Progress (Work Orders) Report!