Anterra WIP Management

Anterra Work in Process Management & Reporting

In depth review on why to use WIP with some common mistakes made during first use.

Overview

Anterra has comprehensive WIP Management and WIP Reporting in the Construction BI module.  Typical menu access is located as shown below. Each client may have customized menus.  

WIP Management Grid

The WIP Management grid is where users are able to make entries within Anterra to adjust revenue recognition.  Note that all entries are automatically reversed within Anterra in the following month to avoid potential duplications between actuals and WIP Management adjustments.  The WIP Management grid is consistent for all clients, while we offer 5 standard WIP Reporting Pivot Grids that can be customized with any view you like.  They will be shown later in this article. 

 The WIP Management grid displays the following columns on the left side which allow you to make entries to adjust: 

1) “WIP Contract Adjustment” (Revised Contract Value) 

2) “WIP FCaC Adjustment” (Forecast Cost At Complete) 

3) “WIP Job Cost Accruals” (JTD Cost) 

On the right side of the grid, in column “R”, is where users can simply enter a number for “WIP % Override” (% Complete)- entering this percentage will automatically create a WIP FCaC Adjustment entry to set the WIP % Complete to the value entered: (Note that if a value is entered in the “WIP % Override" column, this will override anything that is in the “WIP FCaC Adjustment” column, as it will create a new entry in that field.) 

Columns U through AA reflect the values for GL Entries, calculating Earned Revenue, Costs in Excess of Billings, and Billings in Excess of Cost. Note that should a job have an expected loss (indicated by a negative figure in the “JTD WIP Gross Profit” column), this will automatically be included in the Earned Revenue column. 

Parameters

There are parameters at the top of the grid which allow you to select 

1) Consolidation Group or individual company / division 

2) Individual Project Managers 

3) Jobs to include on the grid at the selected month end 

a) Jobs in Progress Today (any jobs as of the latest sync with the status as In Progress in your source system)

b) Open at the Selected Month End (filters to jobs with an Actual Completion Date that is after the selected Month End) 

c) Active at the Selected Month End (filters to jobs in-progress with an Actual Completion Date that is after the selected Month End or has had any cost or billing activity within the month) 

d) Jobs with YTD Activity (filters to jobs with any cost or billing activity within the year) 

e) WIP – YTD Activity Over Under (filters to active jobs, has any cost or billing activity within the year, or has an outstanding Cost in Excess / Billings in Excess from the end of the prior year. 

This combination of options gives you the ability to roll back the WIP schedule to line up with the state it was in at the selected month end. 

4) Month End - WIP is run at a month end, you can select the month end to view using this parameter 

Sources of Data for the WIP Management Grid

All data on the grid comes from your accounting system except the Forecast Cost at Complete which is typically managed in Anterra by your project managers.

ASC 606 Considerations

For U.S. based clients, WIP Management needs to consider the ASC 606 accounting directive for earned value.  There are many resources online to describe the effects of this accounting rule change.  The largest impact is that companies are no longer able to include the cost of uninstalled materials in the earned value calculation.  The easiest way to handle this is to enter a negative number in the WIP Management grid - WIP Job Cost Accruals column.

Saving Data After Entry

After WIP adjustment entries have been made on the grid, the "Save Changes" button on the top right is highlighted.  Changes need to be saved before exiting the grid. 

 Work in Progress Reporting

Anterra has 5 standard WIP Pivot Grids 

Each grid can be customized in our Anterra Pivot Grid Administration tool to include dozens of columns available in which to build reports.   

For example, the WIP report for Jobs with YTD Activity (shown below), gives users the ability to pivot / filter / sort and save as many views as you like.  Views can be created and shared by a grid administrator or each user may create and save "My Views". 

Please contact your Anterra Consultant to discuss your WIP reporting needs. 

 

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