Use this function to make an estimate of the value (accrued income) of an invoicing plan. This is then used as basis for the Work in Progress voucher.
There are two ways to enter the value:
The calculation that is done when using the function Calculate WiP Value is based on the Progress of the Project Activity on the Account Date. The Progress is compared to the Early Start (or Actual Start if it exists) and Early Finish of the Project Activity, this is then compared to the Invoice Plan Start Date and Planned/Actual Invoice Date columns of the Invoice Plan to give a percentage. This percentage is then multiplied with the Sales Amount of the Invoicing Plan. If an Actual Finish exists for the Project Activity then the value is set equal to the Sales Amount.
An example:
We have a Project Activity with a Progress of 50% as per 06/30/2001, the Actual Start is 01/01/2001 and Early Finish is 12/31/2001. There is an Invoicing Plan registered for USD 10,000, the Invoice Plan Start Date is 04/01/2001 and the Planned/Actual Invoice Date is 09/30/2001. When using the function with 06/30/2000 as Account Date we will get an Estimated WiP Revenue Amount Currency of USD 5,000.
If we instead have a Progress of 62.5% as per 06/30/2001 we will get an Estimated WiP Revenue Amount Currency of approximately USD 7,500. The reason for this is that it is assumed that the Progress is linear in the case of calculating the Estimated WiP Revenue Amount Currency. In this context work doesn't start on the Invoicing Plan until we have a Progress of 25% on the Activity, and when we have a Progress of 75% of the Activity we should be finished with the work for the Invoicing Plan. This works the other way around as well, if we have a Progress of 50% as per 07/31/2001 we will still only get an Estimated WiP Revenue Amount Currency of USD 5,000.
As a result of this entry the value of the plan is included on the Work in Progress voucher when the function Create Work in Progress Accounting is used.