27 Overview to Job Progress

This chapter contains these topics:

27.1 About Job Progress

You can enter information that the system uses to calculate the overall percentage of completion and projected final values for a job.

You can use projected final values to find areas of a job where cost and budget variances occur. You can then adjust your job as needed. You can also use the percentage of completion and projected final values when you perform profit recognition for the job.

The system calculates the projected final values using a method of computation that you specify. You can choose from a number of different methods of computation. You assign a specific method of computation per line item of your cost code structure.

You can also generate a worksheet which you can take on-site to enter estimates of the percentage of completion information and relevant amounts and quantities for your jobs. You can then enter the information into your system and calculate your projected final values.

For example, assume you are contracted to build a large regional airport. The airport is your project, and each subproject within it, such as the construction of the main terminal building, the automated baggage system, the airport access road, and so on, is a separate job.

The main terminal building job can be divided into a number of work items, each of which can be further divided into tasks. The work items include:

  • Site work

  • Concrete

  • Masonry

  • Metals

  • Thermal and moisture protection

  • Electrical

At the midpoint of your time schedule for the main terminal building job, you calculate the job progress. You generate a worksheet to take to the site and record the percentage of completion and relevant costs and quantities for each account. You then enter the information into your system and specify the methods of computation that you want to use. The system calculates the projected final value information for the main terminal building job.

Complete the following tasks:

  • Understand methods of computation

  • Work with job progress

27.2 Understanding Job Progress

You should understand the following topics that relate to job progress:

  • Continuum of certainty

  • Job cost ledger types

27.2.1 Continuum of Certainty

When you start a job, you estimate the final costs, revenues, and so on, that you expect at the completion of the job. You then budget accordingly. However, during the course of the job, your final projections are likely to change, and you should adjust your budget to accommodate those changes. The closer you are to the completion of the job, the more accurate your final projections become. At the end of the job, your final values are known with 100% certainty. Ideally, your final budget should match the final values.

The following illustration displays the relationship between the projected final values and the budget for a job.

Figure 27-1 Continuum of Certainty

Description of Figure 27-1 follows
Description of ''Figure 27-1 Continuum of Certainty''

The graph shows the certainty of the projected final values and budget, relative to the actual final values and budget, over the course of a job.

As your projected final values change, you can adjust your budget to compensate. At the end of the job, your projected values, actual final values, and final budget should all be the same.

Your projected final values give you a point of reference from which to make changes to your job. The sooner you react to variances in your projected final and budgeted final values, the sooner you can identify problems and correct them.

27.2.2 Job Cost Ledger Types

The system calculates job progress from data stored in the Account Balances table (F0902). The ledgers in the Account Ledger table (F0911) can contain both amounts and quantities that support the information in the Account Balances table, including:

  • Budget information

  • Commitment information

  • Actual information

  • Field progress information

  • Forecasts and estimates

  • Projected final information

The Job Cost system uses the following user defined ledger types (system 09, type LT):

Ledger Types Description
AA and AU Actual amounts (AA) and actual units (AU).
JA and JU Job budgeted amounts (JA) and job budgeted units (JU).
PA and PU Committed amounts (PA) and committed units (PU). These relate to purchase orders and subcontracts.
HA and HU Projected final amounts (HA) and projected final units (HU).
FA and FU Field progress amounts (FA) and field progress units (FU). These relate to the difference between the job cost budget and the projected final values.
F% Percent of job complete.
IA and IU Budget change amounts (IA) and budget change units (IU). These relate to methods of computation R (Revenue-Unit Price Contract) and A (Account Budget-Forced) and are maintained by the system.
RA Remaining unit rate. This relates to method of computation U (Remaining Unit Rate).

Note:

If you require additional budget ledger types to be included in the revised budget for your jobs, you can create user defined ledger types, which must be included in user defined codes tables 51/RB and 51/RU. The system uses any budget ledgers that you include in these tables in projected final calculations.