Activate work in progress

Before you can use WIP integration, you first have to activate the functionality. With this you indicate that the work in progress should be carried forward from the projects to the financial administration. If you do not integrate work in progress, only the project invoices will be entered in the financial administration.

Note:

Once entries from Profit Projecten have been journalised (carried forward) to Profit Financieel, you can no longer deactivate or change the WIP integration. This can only be done by an AFAS consultant. Please contact your consultant or AFAS Support.

To activate WIP integration:

1. Go to: Projects / Management / Settings / Integration financial.
2. Select the Use WIP integration check box.
3. Select the Divide WIP check box if you want to split the costs and revenues of the work in progress before you enter them.

   Select the Divide WIP check box if the work in progress balance on the balance sheet account cannot be negative (this may happen, for example if you invoice in advance). To prevent this from happening, create two separate balance sheet accounts, and post a debit entry for costs to one account (these are the current assets, entry type 2) and a credit entry for the revenues to another account (these are the short-term obligations, entry type 8).

   Do not select the Divide WIP check box if both the costs (debit) and the revenues (credit) are entered on one balance sheet account. In that case the balance of this account is the work in progress for that moment. In that case, entry type 8 is not used.

4. Select the Divide revenue coverage check box if you want to split the work in progress.
5. Select the various calculation bases.

   We advise you to use high level calculation bases as much as possible, for instance at the project group and work type group level. This way you avoid having to create a link to a ledger account when adding a project.

   Note:

   If you use custom dimensions as calculation bases for journalising the work in progress, you first activate these dimensions via the Profit Projecten settings.

6. Click on: OK.

To configure the allocation:

If you use allocations in Profit Financieel, you can also allocate the work in progress entries.

1. Go to: Financial / Management / Settings.
2. Go to the tab: Allocations which shows all axes that have been activated in the environment.
3. Link a project concept to each activated axis, so that the entries are allocated in Profit Financieel.

   Note:

   The code for the project concept is used in the accounting as an allocation code on the axis specified. So, if you select Employee, the code of the employee is used as the allocation code.
   The allocation codes do not necessarily have to exist in Profit Financieel. If for the journalising you use a code that does not exist in Profit Financieel, the code is automatically added. This also applies to the allocation assignment on the ledger account.

4. Click on: OK.