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Refining Work In Progress Totals for Better Accuracy

Accounts, GJ Software Patrick Haley
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What’s Changing

In our ongoing endeavor to improve reporting accuracy, we’re updating how we calculate the Work In Progress (WIP) totals for DPP jobs. Moving forward, we’ll utilize the total amount from all overpayments received, rather than the estimated contract value. This update aims to provide more precise WIP figures and a more accurate representation of contract values..

Key Highlights:

  • DPP WIP calculation will now be based on overpayments received, not estimated contract value
  • The new method ensures more accurate WIP totals
  • Adjustments take into account GST
  • DPP Job Estimates now reflect deposits taken
  • Multiple DPP overpayments are reflected on WIP without the need to make any changes in G.J. Software 

Who’s Impacted 

This update will be relevant to all offices that use DPP jobs.

Why it Matters

Accurate financial reporting is key to your business’s success. By refining our WIP totals, we’re helping you to achieve a more precise understanding of your contract values and financial status. This will empower your strategic decision-making process.

Additional Details 

  • WIP doesn’t consider estimated contract value: Our new calculation process utilizes the total amount from all credit notes received for a DPP job, instead of the estimated contract value. This ensures more accurate WIP figures.
  • WIP calculated from overpayments in Xero: Our revised method considers overpayments, making sure they are properly reflected in the WIP totals.
  • WIP considers GST: The revised calculation process takes into account GST, where applicable, making necessary adjustments.
  • DPP Job Estimate: Estimates for DPP jobs should always be reviewed to ensure it doesn’t exceed overpayments received for each job
WIP totals for DPP jobs were previously calculated from the Est. Contract Price field in the DPP jobs’ details. This value is used in reports like Sales Profit Forecast (YTD), Job Profit, and Builders Insurance Report.
Now WIP totals for DPP jobs are calculated by the sum of all overpayments from Xero.

Getting Started

Please take note that with this new update, all overpayments and GST (where applicable) will now affect the calculation of your WIP totals for DPP jobs. There is no end-user setting for this feature.

Rollout Pace 

The refined WIP totals will be effective as of 27 June 2023 in the US and rolled out to AU and NZ users on 5 July 2023.

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