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.
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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 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
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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.
Budgeted Supplies
Committed Supplies
Actual Supplies
This document covers how Job Supplies are categorized as Budget, Committed and Actual values for Job profitability.
Contents
- Job Profitability
- Flowchart
- Example Job Breakdown
- Frequently Asked Questions
1. Job Profitability
The Job Profitability breakdown is displayed in the main Details tab of a Job. Supply costs and sell amounts are distributed into three categories: Budget, Committed and Actual. The below image shows the Job Profitability for an example Job which will be used to demonstrate how the values are derived.
2. Flowchart
3. Example Job Breakdown
The below images show the 6 supplies that make up the example job, as well as the Purchase Orders and Supplier Invoices.
The table below describes how each supply’s cost is categorized. The example is intended to be straightforward and so does not contain any supplies that have costs split across multiple categories.
Supply | Description | Budgeted | Committed | Actual |
Supply A | Is Actual because it is on the accepted Supplier Invoice Ref001 | $15.00 | ||
Supply B | Is Actual because it is recorded as used | $100.00 | ||
Supply C | Is Committed because it is on PO30975 | $10.00 | ||
Supply D | Is Budgeted because it is not on a Supplier Invoice or Purchase Order and is not recorded as used | $21.00 | ||
Write In A | Is Actual because it is on the accepted Supplier Invoice Ref001 | $27.00 | ||
Write In B | Is Actual because it not marked as Must Be Ordered and is a Write In | $32.50 | ||
Totals | $21.00 | $10.00 | $174.50 |
4. Frequently Asked Questions
- Can a supply have an amount split between Budget, Committed and Actual?
Yes. For example, if a supply has a quantity of 7 on a Purchase Order while the supply itself is a quantity of 10 then 7 will be committed and 3 will be budgeted.
- How do kits fit into the calculations?
The supplies and write ins within each kit on the job are subject to the same calculation as regular supplies and write ins. The difference is just that supplies and write ins within kits take the quantity of the kit into consideration.
- For reports with date ranges, how is the date determined?
Reports spanning a date range must consider when a supply becomes a Budgeted, Committed and Actual amount. This date is determined as follows:
Condition | Date |
On Accepted Supplier Invoice | The Supplier Invoice date |
Usage recorded | The date when the usage was recorded |
On Purchase Order | The date the Purchase Order was created |
Otherwise | The date the supply was added to the Job |
A supply can have both a usage recorded and be on an accepted Supplier Invoice. In this case the Supplier Invoice date takes precedence. Note that this does mean that if a supply is recorded as used in one month and then part of an accepted Supplier Invoice the next month the actual date will initially be the first month and then effectively moved to the next month once the Supplier Invoice is accepted. In this case the used date is considered provisional.