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
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the figures change depending on
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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.
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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
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1 supply item
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with a unit cost of $50.00
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excluding tax and marked as "Must Be Ordered"
Calculation for Budgeted, Committed, and Actual Supply
1. | Add supply item ($50.00 cost) to |
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job marked as 'Must Be Ordered' | → 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. | Receive, Accept & Allocate Supplier |
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Invoice | → Budgeted Supplies = $0.00, Committed Supplies = $0.00, Actual Supplies = $50.00 |
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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.
Budgeted Supplies is $2,500.00 which is equivalent to 5 quantities x $500.00 There was total of 10 quantities and we ordered only 5 quantities Committed Supplies is $1,000.00 which is equivalent to 2 quantities x $500.00 We ordered 5 quantities out of 10 quantities but only received 3 quantities 5 - 3 = 2 quantities remain as committed supplies Actual Supplies is $1,500.00 which is equivalent to 3 quantities x $500.00 These are the received quantities in the supplier invoice |
The following charts further illustrate a few more scenarios around budgeted, committed, and actual supplies.
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Budgeted Supplies
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Committed Supplies
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