Supplies are calculated in three ways in Job Profitability table. It is important to note that that 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 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 1: 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.
Example
To better explain this, let's use the following example of a test 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 |
Tip
Calculation is straightforward if ordering and allocating exact number of supplies that needed to be ordered.
However, calculations are more complex in scenarios such as a job with supply of 10 quantities marked as "Must Be Ordered", PO created only for 5 quantities and then invoiced for 3 quantities.
The following scenarios and charts further illustrate a few more scenarios around budgeted, committed, and actual supplies.
Actual Supplies
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
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.