Work in Progress (WIP) evaluation in plant construction#
general#
The following sections describe the Work in Progress (WIP) Valuation module. The determination of the valuation as well as the execution and the posting process will be explained in short form. Finally, archiving and evaluation in project valuation are addressed.
WIP Valuation can determine project values based on planned project budget items and posted project items. Project accounts are used to assign these items to specific line items and are stored as information on the line items. The project accounts are determined via a setup based on project type, activity type and product posting group separately for sales and consumption and assigned to the items.
Via so-called project account schemes with variable column layouts, the values on these project accounts can be evaluated for each project. The flexible structure of the schema makes it possible to display actual and planned values for the different project accounts. Using formulas and if-then conditions, the values can additionally be linked or compared so that the relevant amounts for the WIP evaluation can be displayed. Specially marked rows and columns determine which values are subsequently transferred as a posting to financial accounting.
setup#
This section gives an overview of the necessary setups. It explains which master data must be set up for project evaluation in general so that projects can be evaluated automatically. The following master data must be set up in order to use project evaluation:
- WIP Valuation Setup
- Fibu integration codes
- Project chart of accounts
- Project account scheme for WIP valuation
- Column layout project account scheme for WIP valuation
In order to perform the valuation runs, some basic specifications and setups must be made in advance. This section describes which setups need to be made.
wip evaluation setup#
In the WIP Valuation Setup, general parameters for the project valuation are defined. The posting of the valuation figures is done from the valuation proposal using a recurring Fibu Buch. sheet.
| field | description |
|---|---|
| Fibu Book | Here the book. sheet template and name for the posting of the project valuation can be stored. The ledger sheet must be a recurring ledger sheet. |
| Book Sheet Name | Here you can define the accounting sheet template and name for posting the project evaluation. The ledger sheet must be a recurring ledger sheet. |
| Prefix Document no. | When posting the valuation proposal to the accounting system, the document number is composed of this prefix and MM/YYYY of the valuation date. |
| Posting description | Enter here a posting description for the posting to the financial accounting. The description will be completed with MonthName/YYYY of the valuation date when posting the valuation proposal to the Fibu. |
| Prefix Reversal | When posting a new valuation proposal to the general ledger, the existing posting will first be reversed. The document number for the reversal is composed of this prefix and MM/YYYY of the valuation date. |
| Project evaluation approved as of | Here you can specify the permitted posting period for project valuation postings. |
| Project valuation allowed until | The allowed booking period for project valuation bookings can be specified here. |
| Repetition rate | Since a recurring ledger sheet is used for posting the valuation proposal to the financial accounting, you must specify here which recurrence applies. e.g. +1T+1M-1T |
wip fibu integration code#
WIP Fibu integration codes are assigned in the project account schemes for the lines whose amount is to be posted to the financial accounting. In the WIP Fibu integration codes the debit and credit accounts for the capitalization are defined.
For the different valuation items (e.g. expenses, down payments) and methods (e.g. Local GAAP, IFRS) separate WIP Fibu integration codes must be set up for each posting record. The codes must be assigned to the respective lines in the project chart of accounts.
| Field | Description |
|---|---|
| Code | Unique identifier of the Fibu integration code |
| Description | Description of the accounting integration code |
| Debit account activation | The debit amount of the relevant project account scheme line is posted to this account when the activation is posted |
| Credit account Activation | The credit amount of the relevant project account scheme line is posted to this account when the activation is posted. |
project chart of accounts#
A project chart of accounts must be set up so that the corresponding project values can be evaluated using a project chart of accounts. For more information on the project account scheme, see here.
project chart of accounts#
This section explains the specifics of the project account schema as it relates to WIP assessment. Basic information on setting up project account schemas and the associated column layouts can be found here.
A project account scheme must be set up for each of the valuations to be determined, e.g., one scheme each for IFRS and Local GAAP. The fields in the project account scheme that are additionally relevant for the WIP valuation must be filled as follows:
| Field | Description |
|---|---|
| Count | A new option If can be selected here. This option can be used to compare row values using arguments and conditions. |
| Argument 1 Condition Argument 2 Argument 3 Argument 4 |
These fields must be filled if the summation type, If is used. The fields must be filled according to the following logic: If Argument 1 Condition Argument 2, then Argument 3 other Argument 4 Note In the arguments, only rubric no. and arithmetic operators or numbers may be contained in the arguments. Options for condition: - Empty - < - > - = - <= - >= For all other types of summation, the fields remain empty. |
| Fibu Integration Code | A WIP Fibu Integration Code must be specified here if a posting to Financial Accounting is to be generated for this row. For this entry, the accounts stored in the WIP Fibu integration code will be used. Note Only amounts from lines with the "Line value types" Valuation, Valuation correction and Received down payments can be entered into the Fibu |
| Line Value Type | This field specifies the line value heading in the WIP valuation proposal. Options are: - Expenses - Down Payment Invoices - Revenues - Valuation - Down Payments Received - Valuation Correction Lines with the "Valuation Correction" option usually do not show a calculation, the line can be used later in the valuation proposal for manual correction. |
| Calculation in column | As values are displayed in different columns in the column layout, it can be defined here which value is relevant in which row and column. For example, planned revenues are to be displayed in one row and actual revenues in another, whereby it can only be defined in the columns whether the values are planned or actual values. |
project account scheme column layout#
In the column layout assigned to the project account scheme, exactly one column must be marked as the relevant column for determining and displaying the valuation amounts.
| field | description |
|---|---|
| Column WIP | Set a check mark here in the column that is relevant for the project valuation. Note Since planned and actual values - as well as revenues and costs - can only be displayed in different columns, a totals column with the column type "Formula" is usually used to combine these values and is also used as the column for the WIP. |
example of a wip valuation scheme#
The following example is intended to show the structure of a WIP valuation scheme and to illustrate the options for calculating and displaying the valuation.
example of a project account scheme#
| Rubric No. | Description | Counting up value | Counting up | Calculation in column | Line value type | Argument 1 | Condition | Argument 2 | Argument 3 | Argument 4 | Fibu Integration code |
|---|---|---|---|---|---|---|---|---|---|---|---|
| R0010 | Plan values | Project accounts | |||||||||
| R0020 | Revenue | Project accounts | No. of relevant project accounts | SP040 | |||||||
| R0030 | Expenses | Project accounts | No. of relevant project accounts | SP030 | |||||||
| R0040 | Planned expenditure in % | Formula | R0030/R0020 | SP050 | |||||||
| Project accounts | |||||||||||
| R0050 | Actual values | Project accounts | |||||||||
| R0060 | Down payment invoices | Project accounts | No. of relevant project accounts | Down payment invoice | |||||||
| R0070 | Revenues | Project accounts | No. of relevant project accounts | SP020 | Revenues | ||||||
| R0080 | Sum of services | Formula | R0060..R0070 | SP050 | |||||||
| Project accounts | |||||||||||
| R0090 | Construction | Project accounts | No. of relevant project accounts | SP010 | |||||||
| R0100 | Production | Project accounts | No. of relevant project accounts | ||||||||
| R0110 | External services project accounts | No. of relevant project accounts | SP010 | ||||||||
| R0120 | Travel expenses | Project accounts | No. of relevant project accounts | SP010 | |||||||
| R0130 | Other Expenses | Project Accounts | No. of Relevant Project Accounts | ||||||||
| R0140 | Total Expenses | Formula | R0090..R0130 | SP050 | Expenses | ||||||
| R0150 | Effort adjusted | Formula | R0140+(R0040*R0070) | SP050 | |||||||
| R0170 | HZ: Valuation correction | Project accounts | Valuation correction | Valuation CORR | |||||||
| R0180 | HZ: down payments received | Project accounts | No. of relevant project accounts | DOWN PAYMENT RECEIVED |
example of the corresponding column layout#
| column no. | column header | column type | item type | amount type | amount type | formula | column WIP |
|---|---|---|---|---|---|---|---|
| SP010 | Actual: Expense | Movement | Project item | 1 | Asset amount (MW) | No | |
| SP020 | Actual: Revenue | Movement | Project item | 2 | Amount sold (MW) | No | |
| SP030 | Plan: Expense | Movement | Project plan line | 1 | Cost amount (MW) | No | |
| SP040 | Plan: Revenue | Movement | Project plan line | 2 | Sales amount (MW) | No | |
| SP050 | Sum column | Formula | SP010..SP040 | Yes |
posting procedure project valuation#
In this section, the posting flow of project valuation is explained in more detail.
The following points are addressed:
- What is the WIP valuation proposal.
- How the valuation lines are calculated
- Posting the WIP valuation proposal us effects on financial accounting.
fill valuation proposal#
The actual valuation is done in the WIP valuation proposal. The function "Calculate valuation lines " is used to fill the valuation proposal.
Folgende Optionen müssen hier gesetzt werden:
| Feld | Beschreibung |
|---|---|
| Bewertungsperiode | Hier muss das Startdatum der relevanten Buchhaltungsperiode ausgewählt werden. Für die Buchung selbst wird anschließend der Monatsletzte der Periode verwendet. |
| Bewertungsschema | Wählen Sie hier den Namen des Projektkontenschemas aus, mit dem Sie die Bewertung durchführen möchten. Vor der Berechnung der Werte wird geprüft, ob alle notwendigen Einstellungen im Projektkontenschema vorhanden sind. Dies sind: • Für jede "Zeilenwert Art“ muss eine Zeile im Schema vorhanden sein. • Im Spaltenlayout muss eine Spalte als "Spalte WIP“ definiert sein. |
Zusätzlich können die zu berücksichtigenden Projekte ausgewählt werden. So haben Sie die Möglichkeit bestimmte Projekte / Projektgruppen mit einem anderen Projektkontenschema zu bewerten. Sollten Sie Projekte parallel nach unterschiedlichen Bewertungsgrundsätzen bewerten (z.B. IFRS / Local GAAP), so muss die Berechnung je Projektkontenschema erneut aufgerufen werden.
Es werden nur Projekte berücksichtigt deren Enddatum noch nicht gefüllt ist bzw. deren Enddatum nach dem Bewertungsdatum liegt.
Bei jedem Aufruf der Funktion wird pro Projekt eine Zeile im WIP Bewertungsvorschlag erzeugt.
wip valuation proposal#
The fields in the "WIP valuation proposal" are filled as follows when calculating:
| field | description |
|---|---|
| OriginNo. | This field indicates the project to which this evaluation line applies. |
| Description | This field displays the project description. |
| Valuation Date | This is the date (last day of the month of the valuation period) that the entry will be made in the financial accounting system. |
| Total Expenses | Amount determined by the calculation of the project chart of accounts for this project in the rows marked as "Expenses". |
| Total of down payment invoices | Amount determined by the calculation of the project chart of accounts for this project in the rows marked as "Down payment invoice". |
| Total of partial and final invoices | Amount determined by the calculation of the project chart of accounts for this project in the rows marked as "Revenues". |
| Valuation | Amount determined by the calculation of the project chart of accounts for this project in the rows marked as "Valuation". |
| Valuation correction | A manual value for the valuation correction can be entered in this field. The value must be positive and must not exceed the valuation amount. |
| Valuation Adjustment Integration Code | The value from the Valuation Adjustment field will be posted to the accounts of this Valuation Integration Code. |
| Adjusted valuation | This field is calculated as follows: - Valuation - Valuation correction |
| Prepayments Received | Amount determined by calculating the project chart of accounts for this project in the rows marked as "Prepayments Received". |
| passive accrual received down payments | This field is calculated as follows: - if "received down payments" is higher than "adjusted valuation": "received down payments" - "adjusted valuation" - _otherwise this value is 0 |
| Fibu integration code passive accrual received down payments | On the accounts of this Fibu integration code the value from the field "passive accrual received down payments" is posted to the Fibu. |
posting a valuation proposal#
The following steps are performed when posting the valuation proposal:
- First, the system checks whether a posted valuation already exists for the project with this valuation date and project chart of accounts used to calculate the line. Already posted valuations are archived in the "WIP Valuation Archive" with a sequential number.
- If a valuation has already been posted under these premises, it is first reversed.
- Subsequently, the valuation proposal is posted and stored in the archive with the next consecutive number.
- Optionally, a printout of the valuation can be made.
The posting of the valuation proposal takes place via a recurring book. sheet with the repetition type "Reverse variable". This means that the valuation is booked in on the valuation date and booked out again on the following day. Thus, with each new valuation in the following month, the accumulated value is always posted. With the previous month's values already booked out on the first of the month, the development of the amounts can thus be tracked.
A possible reversal cancels both the postings on the valuation date and the write-off postings on the following day.
Posted are the values from the following columns with the accounts of the respective WIP Fibu integration code of the assigned project chart of accounts row:
- Valuation Adjustment
- Adjusted valuation
- Liabilities accrual received down payments
The document no. and the description for the posting will be set according to these specifications:
- Document no.: The respective prefix.
- Description: The posting description from the "WIP Valuation Setup" is completed with month name/YYYY of the valuation date.
A new ledger is created with the corresponding G/L items and a new entry is created in the "WIP Valuation Archive". In the archive all information from the "WIP Valuation Proposal" is available, in addition a sequential number is assigned per combination of project no./valuation date/project account scheme. The valuation with the highest sequential number indicates which are the currently posted values in the financial accounting.
print valuation proposal#
The WIP Valuation module includes a report for printing and proving the valuation proposal.
Lines generated in the "WIP Valuation Proposal" can be printed in a report before or with posting. The values generated in the valuation proposal are listed in tabular form. In addition, a total is calculated for all valuation lines.
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