WIP is basically the cost incurred in a project that is still ongoing and has not yet been billed to the customer. This includes labor, overhead, and materials. Properly preparing this report helps understand the true financial status of the project, ensures that all accrued costs are accounted for, and allows for project completion and profitability to be estimated.
A common problem for businesses is reconciling budgeted amounts with actual expenses and hours. Dynamics 365 F&O Conspro allows project managers to set detailed budgets. This includes labor, materials, and other project-related expenses.
As the project progresses, the actual hours worked and amounts spent are also recorded in the system. This data is important for ongoing monitoring and comparison against the budget. Reporting and analysis are also included. It provides robust reporting tools to compare budgeted figures with actual figures, highlight differences, and take corrective action when necessary.
Dynamics 365 WIP has a variety of options for identifying and managing project budgets that can be tailored to different business needs. Fixed Price Projects, for example, are one of them. Budgets for fixed price projects can be optimized against the agreed contract value, helping to keep costs within budget.
Time and materials projects are also a topic worth mentioning. Budgets for projects billed for time and materials can become more flexible, and can be adjusted as they progress.
A number of projects may have a mix of fixed price and time and materials factors. Dynamics 365 F&O Conspro overcomes these complexities and provides accurate budgeting and reporting.
