The value of work in progress (WIP) provides insight into the hours and costs you have spent in relation to the invoiced revenue. This shows you whether your invoicing is keeping pace with the work you have already performed.
A positive WIP means that more hours/costs have been spent than revenue has been invoiced: work has been performed that has not yet been invoiced.
A negative WIP means that more has been invoiced than hours/costs have been spent: there are likely still hours/costs to be incurred.
Ideally, work in progress is as close to zero as possible, so that your hours and costs are optimally covered by sales invoices.
Report structure
At the top is the filter bar; below it is a block with totals (Total) and the Detail view (the table). The values at the top are the totals of the corresponding columns in the table below. The report shows data up to and including today: hours registered in the future are not yet counted — they are not yet work in progress.
You can display the table in two ways:
Per project — the values per project.
Per service — the values per project, further broken down by service and revenue group.
Detail view
The table shows the values per project (or per service). Use Columns to choose which columns are visible, and use Export to download the data.
Table columns
KPIs
KPI | Explanation |
Direct value | The selling value of direct hours (hours logged on an invoiceable project). |
Billable value (excl. corrections) | The selling value of all registered billable hours (number of hours × selling rate), before corrections. |
Correction value | The sum of all corrections on those hours (can be positive or negative). |
Selling value of costs | The selling value of costs incurred: the registered costs plus the configured margin. |
Cost corrections | The sum of the corrections on those costs. |
Invoiced | The invoiced revenue in the period (incl. credit notes, excl. VAT). |
WIP balance | The spent hours + costs minus the invoiced revenue. |
Average progress | The average progress of the projects in the selection. |
Dimensions
Date
Project start date
Project end date
Relation
Relation number
Customer group
Project number
Project
Project manager
Project status
My company
Revenue group
Default service
Service
Invoice method
Active
Filters
Use Add filter to add filters; use Reset filters to reset everything.
Dimensions
Period
Project start date
Project end date
Revenue group
Project
Default service
Service
Project number
My company
Relation number
Customer group
Invoice method
Project manager
Project status
Project category
Progress
Active
How values are calculated
Billable value and corrections
The billable value is the selling value of all hours registered in the period: number of hours × selling rate. Future hours are not included.
Hours registered on a time and expenses basis while the invoice checkbox behind the hour type is not enabled are not included.
The Correction value is the sum of all corrections on those hours; corrections can be positive or negative. The billable value plus the correction value is therefore the value of the hours you expect to invoice.
Selling value of costs
This is the total amount of all registered costs including the margin configured on the cost type — in other words, the selling value of all costs.
Example: you hire someone for € 1,000 and pass this on for € 1,200 (20% margin, configured on the cost type). If you now post a purchase invoice of € 1,000, this results in a selling value of costs of € 1,200. At € 500 purchase, that would be € 600.
Example 2: you use costs per unit to pass on payslips. You charge € 10 per slip and post 10 units: this results in a selling value of costs of € 100. A margin can also be configured on costs per unit.
The formula is therefore: registered costs + any margin = selling value of costs.
Note: with active project purchase integrations with Exact or Twinfield, project purchases that are "to be processed" are also included in the total. These costs may not yet appear in the table because no service is known yet, but they are included in the total calculation because they have been posted to the project in the accounting package.
Invoiced
The sum of all invoiced revenue over the selected period, including credit notes. Good to know:
Amounts are always exclusive of VAT and include only invoices sent from Simplicate.
The period is determined by the invoice date (not the posting date, which may differ).
WIP balance
The WIP balance shows the difference between hours + costs spent and what has been invoiced. The main formula:
The selling value of all billable hours (+ any corrections) + the selling value of costs incurred (+ any corrections) − the invoiced revenue.
This shows you exactly whether your invoiced revenue is in line with the hours and costs spent to date.
A positive WIP
More billable hours/costs have been spent than revenue has been invoiced. Work has therefore been performed that has not yet been invoiced. Keep a close eye on this: if you identify it too late, the client may be less willing to pay for those hours and costs.
A negative WIP
More has been invoiced than billable hours/costs have been spent. This means:
work still needs to be performed that the client has already paid for;
or the project turned out favorably and the client paid more than was spent.
WIP calculation example
On this project, a total selling value of hours of € 50,675 has been registered, with a positive correction of € 1,200. The total selling value of hours is therefore € 50,675 + € 1,200 = € 51,875.
€ 5,000 in costs has been incurred (purchase price + margin), without correction. The total selling value of hours + costs is therefore € 51,875 + € 5,000 = € 56,875.
Of this, € 104,800 has been invoiced to date. The WIP balance is therefore: € 56,875 − € 104,800 = − € 47,925.
Conclusion: € 47,925 more has been invoiced than hours + costs spent. Work will therefore still need to be performed, or the project turned out favorably.