Generally, companies desire to keep up with invoicing for work orders so that they have invoiced all revenue that has been earned.
Additionally, for maintenance contracts, it is important to ensure that invoiced revenue matches earned by the end of the contract.
Over/under amount represents the difference between the amount of revenue you have invoiced and the revenue you have earned based on materials used and hours of work complete. Reviewing over/under ensures that all opportunities are accurately posting invoiced and earned revenue. By reviewing over/under amounts at various levels (company-wide, by branch, by work ticket) each month, you can:
Identify situations where you need to invoice customers for work complete
Identify situations where operations have not kept up recording work complete
Ensure that the earned revenue to be recognized on the P&L statement for the month is accurate
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