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 different scenarios which impact the calculations.
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Budgeted Supplies - is the total cost of all Job Supplies which are needed to be ordered or the ones marked as "Must Be Ordered."
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Committed Supplies - is the total cost of all Purchase Order Lines created for Job Supplies marked as "Must Be Ordered."
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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.
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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.
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Remaining 5 quantities remain as budgeted supply.
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Actual Supplies - is the total cost of all Supplier Invoice Lines allocated and accepted for a Job.
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Example 1: If job supply has 10 quantities and you create a PO for all 10
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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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is also for 5 quantities.
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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
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job with
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1 supply item with a unit cost of $50.00 excluding tax and marked as "Must Be Ordered
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"
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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:
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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 |
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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. |
The following scenarios and charts further illustrate a few more scenarios around budgeted, committed, and actual supplies.
Actual Supplies
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Calculation is Quantity * Unit Cost
If actual cost is negative or zero, then not actual
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Committed Supplies
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Calculation is Quantity Ordered * Unit Cost
Items not part of the Quantity Ordered will stay as Budgeted Supply
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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
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This is Committed Supplies instead
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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.
PO only have 6 quantities ordered (or $3,000.00) and Supplier Invoice only have 4 quantities received (or $4,000.00)
Calculation
Budgeted Supply $5,000.00 (which 10 x $500) - Committed supply $3,000.00 (which is 6 x $500) = $2,000.00 (which is 4 x $500)
Committed supply $3,000.00 (which is 6 x $500)- Actual Supply $2,000.00 (which is 4 x $500) = $1,000.00 (2 x $500)
Actual Supply = total received in Supplier Invoice which is 4 x $500 or $2,000.00
Refer to the Job Profitability in the image below.
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