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Right now if you update WIP and then post cost to through a vendor invoice the cost adds to the cost at completion rather than reducing the cost to complete. This would help for project reports that need to be altered for one month but not have to continue updating the WIP in future months
Justin Morse
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Why have an expensive system and do all the entries for budgets and commitments if the system wont make the adjustments for us. When doing a WIP and forecasting the final cost, the system needs to be able to calculate the remaining to complete based on the forecasted total cost by a PM versus the posted and committed cost to date. Its simple and we used to do it just in excel. If the system cant do it, I am not sure we need to pay for all the licenses for the PMs
When you have multi-million dollar contracts, it takes a long time to update the WIP each month and usually have many subcontractors and purchase orders. Once manual WIP updates occur, the committed costs do not reduce Costs to Complete. This is very annoying since the project managers have to take extra time to fix the cost to complete for each cost code with a committed cost. Having posted invoices reduce the cost to complete will greatly help project managers so they only have to look at the non-committed cost code lines and save time updating each WIP especially on huge projects.
This is one of the single most important functions of a Project Manager. The entire WIP entry needs some attention. In addition to this idea (which is absolutely needed), the committed cost are frequently incorrect when compared to the committed cost report and other various reports and there needs to be a note column that prints on a report so that you can explain why you have made adjustments.
Yah it's very annoying to come back to your Cost at completion a month later and wonder what was going on. After doing a WIP update at some point of the project, the cost at completion cell should technically stay the same until: 1 - you manually adjust the cost at completion or 2 - your costs go above the amount previously forecasted.