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To better explain this, let's use the following scenario of a test job with a supply item with a unit cost of $50.00 excluding tax and marked as Must Be Ordered.
Scenarios
1. | Add supply item ($50.00 cost) to job marked as 'Must Be Ordered' |
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| → Budgeted Supplies = $50.00, Committed Supplies = $0.00, Actual Supplies = $0.00 |
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2. | Create Purchase Order for job supply |
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| → Budgeted Supplies = $0.000, Committed Supplies = $50.00, Actual Supplies = $0.00 |
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3 |
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. |
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| Receive, Accept & Allocate Supplier Invoice | → Budgeted Supplies = $0.00, Committed Supplies = $0.00, Actual Supplies = $50.00 |
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Please note that calculations are affected when complex scenarios occur such as a job with supply added for 10 quantities, PO created only for 5 quantities and then invoiced for 8 quantities. |
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| Scenario | Actual? | Notes |
| Supply NOT allocated to a Supplier Invoice but marked as Must Be Ordered | NO | |
| Supply NOT allocated to a Supplier Invoice and NOT marked as Must Be Ordered but is a Write In or Inventory Tracking Disabled | YES | Calculation is Quantity * Unit Cost If actual cost is negative or zero, then not actual |
| Supply NOT allocated to a Supplier Invoice and NOT marked as Must Be Ordered | YES | Calculation is Quantity Used * Cost at time of Use |
| Write In and marked as Must Be Ordered | NO | It is a budgeted supply instead |
| Write In and NOT marked as Must Be Ordered | YES | |
| Supply allocated to a Supplier Invoice | YES | Calculation is Allocated Qty * Supplier Invoice Line Unit Cost |
Committed Supplies
| Scenario | Committed? | Notes |
| Supply NOT marked as Must Be Ordered | NO | It is a actual supply instead |
| Supply marked as Must Be Ordered but has NO PO created | NO | It is a budgeted supply instead |
| Supply marked as Must Be Ordered, has PO created but NO Supplier Invoice allocated | YES | Calculation is Quantity Ordered * Unit Cost Items not part of the Quantity Ordered will stay as Budgeted Supply |
| Supply marked as Must Be Ordered, has PO created but and has Supplier Invoice allocated | YES | Subtract Actual Supplies from Committed Example: PO has 10 quantities ordered but only 6 quantities received in supplier invoice. Committed supply (10) - Actual supply (6) = 4 |
Budgeted Supplies
| Scenario | Budgeted? | Notes |
| Supply or Write In NOT marked as Must Be Ordered | NO | It is Actual Supplies instead |
| Supply or Write In marked as Must Be Ordered | YES | |
| Supply or Write In allocated to Supplier Invoice or Inventory Tracking Disabled or Quantity Fully Used | NO | |
| Supply or Write In marked as Must Be Ordered and has PO created for all quantities | NO | This is Committed Supplies instead |
| Supply or Write In marked as Must Be Ordered and has PO created for partial quantities | YES | If partial quantities are ordered, subtract actual/committed costs from budgeted Example: Supply has 10 quantities but PO only have 6 quantities ordered. Budgeted supply (10) - Committed supply (6) = 4 |
Another Example:
Job has supply item with 10 quantities and cost is $500.00 per item so total supplies is $5,000.00
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