Job WIP Cockpit - NAV2013

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As I wrote in my old posts, if you have not complex construction system, you can use standard NAV for construction business. Now we have new version – Microsoft Dynamics NAV 2013 and few new solutions, especially for Job Management. As the construction processes are jobs we perform usually several months (or several years), WIP calculation is very important part of Job Management. In NAV2013, we have new functionality and it place for WIP calculation for Jobs we call the WIP cockpit.

The WIP cockpit provides a complete overview of costs, revenues, and profits generated by the project in particular period. In a single place, we can see the amounts that will be posted to company ledgers, and see how these amounts were calculated, with details of the underlying transactions that caused them just another click away. In addition, the WIP cockpit displays WIP warnings, which enable users to see if the underlying collected data is in line with what is defined by the WIP method and if all prerequisites for recognizing costs and revenues are met before posting WIP to a company’s balance sheet.

The Job WIP Cockpit is the central location to track WIP for all of your projects. Each line contains information about a job, including calculated and posted WIP.

How WIP cockpit work?

You can find WIP cockpit page on Jobs->Tasks->Job WIP Cockpit.

The window has two parts, and supports easy access to the typical tasks and routines needed to ensure that WIP compliance stays on track. In the upper part of the window, for any job listed, you can select it and perform the following actions:

  • Calculate WIP: On the Home tab, in the Process group, choose Calculate WIP. The results are displayed in the Job WIP Totals section of the window.
  • Post WIP to G/L: On the Home tab, in the Process group, choose Post WIP to G/L. Job WIP totals are posted to the general ledger.
  • Show Warnings: On the Home tab, choose Show Warnings to see the Job WIP Warnings list. From there, you can see the warning message, and make any adjustments that are necessary, if the WIP Warnings field is set to Yes.
  • Entries: On the Analyze tab, you can review WIP entries and WIP general ledger entries, if there are any, as well as job ledger entries associated with the job.

In the lower part of the window, you can see details about calculated WIP for an individual job and use the information provided there to analyze your results.

Calculate WIP

It is necessary to position on required job on top part of window. After that you need to start function “Calculate WIP…”. NAV will make calculation and fill lines based on Job Tasks on bottom part of window, related with top job line. You can see calculated WIP values at bottom part of window.

If you made mistake, you can delete this WIP entries by starting function “Delete WIP Entries”. This function will delete bottom line related with required job line on top part of window.

If system find some problem, NAV will marked with Yes field “WIP Warnings”. You can open page from this field with warning comments.

Post WIP to G/L

If you want to post calculated WIP values to G/L Entry, you need do start function “Post WIP to G/L…”. System will post all WIP entries to G/L entries and move value from “Recog. Costs Amount” field to “Recog. Costs G/L Amount” field on top part windows, as delete WIP entries in bottom lines. You can see all transaction using report “Job WIP To G/L”. Also, you can analyze G/L entries using function “WIP G/L Entries” and using Navigate from that table.

Other Analyze

In addition, beside previous analyze, you can start:

  • WIP Entries Analyze (you can see all WIP entries for job)
  • (Job) Ledger Entries Analyze (you can see all job entries and using Navigate to get source entries or using function “Transfer To Planning Lines…”).

Conclusion

Posting WIP to the balance sheet (and reversing it in case of last minute changes to project costs) is as easy in Microsoft Dynamics 2013 and I think it is very good tool. Probably I’ll include it in NAV4Construction when I will prepare redesign of solution.