Supplies are calculated in three ways in Job Profitability table which can be seen by going to the Job screen → Details tab. It is important to note that the figures change depending on different scenarios which impact the calculations.
Budgeted Supplies - is the total cost of all Job Supplies which are needed to be ordered or the ones marked as "Must Be Ordered."
Committed Supplies - is the total cost of all Purchase Order Lines created for Job Supplies marked as "Must Be Ordered."
Example 1: If job supply has 10 quantities and you create a PO for all 10 quantities then Committed Supplies is for 10 quantities too.
Example 2: If job supply has 10 quantities and you create a PO for only 5 quantities then Committed Supplies is also for 5 quantities. Remaining 5 quantities remain as budgeted supply.
Actual Supplies - is the total cost of all Supplier Invoice Lines allocated and accepted for a Job.
Example 1: If job supply has 10 quantities and you create a PO for all 10 QTY and received only 5 QTY in Supplier Invoice then Actual Supplies is also for 5 quantities. Remaining 5 quantities remain as Committed Supplies
Example 2: If job supply has 10 quantities and you create a PO for 5 QTY and received only 3 QTY in Supplier Invoice then Actual Supplies is only for 3 quantities. Remaining 2 items (part of the original ordered quantity) remain as Committed Supplies.
Tip
Calculation is straightforward if ordering and allocating the exact number of supplies.
However, calculations are more complex in scenarios such as a job with supply of 10 quantities marked as "Must Be Ordered", but Purchase Order created only for 5 quantities and then invoiced for 3 quantities.
Scenario1
To better explain this, let's use the following scenario of a job with 1 supply item with a unit cost of $50.00 excluding tax and marked as "Must Be Ordered"
Calculation for Budgeted, Committed, and Actual Supply
1. | Add supply item ($50.00 cost) to job marked as 'Must Be Ordered' | → Budgeted Supplies = $50.00, Committed Supplies = $0.00, Actual Supplies = $0.00 |
2. | Create Purchase Order for job supply | → Budgeted Supplies = $0.000, Committed Supplies = $50.00, Actual Supplies = $0.00 |
3. | Receive, Accept & Allocate Supplier Invoice | → Budgeted Supplies = $0.00, Committed Supplies = $0.00, Actual Supplies = $50.00 |
Scenario 2
A job with a supply marked as Must Be Ordered for 10 quantities with a unit cost of $500.00 so total is $5,000.00.
A PO is created for 5 quantities and supplier invoice received for 3 quantities.
There was total of 10 quantities and we ordered only 5 quantities
We ordered 5 quantities out of 10 quantities but only received 3 quantities 5 - 3 = 2 quantities remain as committed supplies
These are the received quantities in the supplier invoice |
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The following charts further illustrate a few more scenarios around budgeted, committed, and actual supplies.
Budgeted Supplies
Committed Supplies
Actual Supplies
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