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.
Tip
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
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 |
Scenario 2
A job with a supply costing
The following tables and charts further illustrate a few more scenarios around budgeted, committed, and actual supplies.
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.
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 |
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 |