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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.


(info)  Budgeted Supplies - is the total cost of all Job Supplies which are needed to be ordered or the ones marked as "Must Be Ordered." 


(info)  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.


(info)  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 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.


(info) 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


(info) 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


(info) 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 tables and charts further illustrate a few more scenarios around budgeted, committed, and actual supplies.


Budgeted Supplies


ScenarioBudgeted?Notes
Supply or Write In NOT marked as Must Be OrderedNOIt is Actual Supplies instead
Supply or Write In marked as Must Be OrderedYES
Supply or Write In allocated to Supplier Invoice or Inventory Tracking Disabled or Quantity Fully UsedNO
Supply or Write In marked as Must Be Ordered and has PO created for all quantitiesNO

This is Committed Supplies instead

Supply or Write In marked as Must Be Ordered and has PO created for partial quantitiesYES

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


ScenarioCommitted?Notes
Supply NOT marked as Must Be OrderedNOIt is a actual supply instead
Supply marked as Must Be Ordered but has NO PO createdNOIt is a budgeted supply instead
Supply marked as Must Be Ordered, has PO created but NO Supplier Invoice allocatedYES

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 allocatedYES

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


ScenarioActual?Notes
Supply NOT allocated to a Supplier Invoice but marked as Must Be OrderedNO
Supply NOT allocated to a Supplier Invoice and NOT marked as Must Be Ordered but is a Write In or Inventory Tracking DisabledYES

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 OrderedYESCalculation is Quantity Used * Cost at time of Use
Write In and marked as Must Be OrderedNOIt is a budgeted supply instead
Write In and NOT marked as Must Be OrderedYES
Supply allocated to a Supplier InvoiceYESCalculation is Allocated Qty * Supplier Invoice Line Unit Cost






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