In professional services we are sometimes unable to invoice all of the billable value of the work done on a job and must therefore write-off this time in order to maintain an accurate Work In Progress (WIP) balance. Similarly where we may fixed the price of a job or service and deliver this in less time than anticipated we may be able to recognise a write-up on this job where the total billable value on the job is less than the value invoiced. It is essential that write ons/offs are realised regularly in order to maintain an accurate work in progress balance.
A write-on or write-off is it's own transaction in WorkflowMax. It is independent but related to the timesheet date, the invoice date and the job completion dates. It has it's own write-on/off date and value.
There are three different methods of writing time on or off in WorkflowMax, the best option for you depends on the nature of the job and the timing of the write off. These methods are described below:
1. Write Off at time of invoicing
We can apply a write-on/off at the time of invoicing. The write on's/off's applied using this method will have a write-off date the same as the invoice date. This method can only be used when invoicing a job on the actual time and cost basis which is determined by the nature of the job/engagement. Write-off's cannot be applied using this method where the job is on the fixed price, percentage progress or lump-sum invoicing basis.
To create and invoice on this basis and apply a write on/off; open the job and go to Financial>New Progress Invoice>Actual Time/Cost and once you're in the invoice select the 'Time' tab. Here you can choose which individual timesheet entries or part thereof will have a write on or off applied to them by editing the hours to be greater than or less than the hours timesheeted or marking 'No' in the toggle next to the timesheet entry to write the whole timesheet entry off.
Save and approve the invoice to apply the write-off.
Note: The staff members you choose will wear the write on's/off's you apply which will affect their performance results.
Note: Write on's/off's can only be applied on the hours basis not the value basis. For example you cannot apply a $500 write-off to a specific timesheet entry, you will need to convert this to hours at that staff members hourly rate for this job or task.
2. Write Off during a project
You can apply a write off throughout a project. This can be done on jobs that are on the time and cost or fixed-price basis. The write-off date used will be the date you apply the write off (today's date).
To do this open the job and go to the Financial tab, on the left select 'Remove from Invoice List'. A write off will be applied for the full value of any remaining WIP transactions on this job including timesheets, disbursements or unbilled portions of fixed-price or quoted jobs. Write offs applied using this method cannot be for a specific amount or a specific set of timesheets/tasks/costs.
This can cause problems where the project is in-progress, a monthly progress invoice has been generated on the 6th day of the month dated the end of the prior month and all un-invoiced balances prior to the invoice date need to be written off. In this instance you'd likely have 6 days worth of timesheets on this job for the new month that you wouldn't want to write off. See 'Managing In Period Write offs' for your best options here.
3. Write Off at the completion of a project
A write off can be applied at the completion of a project using method 2 above. The job can be completed prior to this date by having its job state updated to completed. As above the write-off date using this method will be the date you click 'Remove from Invoice List' (today's date).
Note: It is possible and very common to complete a job in WorkflowMax without writing off the remaining time on that job.
You can also apply a write off at the end of a project by selecting 'New Final Invoice' when generating your final invoice for a job. All time and unbilled portions of quotes/estimates will be written off if they do not feature on this final invoice. The write-off date used here will be the final invoice date.
Those are your three options for applying write-on's/off's in WorkflowMax. The method you use will depend on the invoicing basis for the job and the timing of the write-off.
Note: It is not possible to apply fixed value on a selected date to be written off a job in WorkflowMax. A write-off is it's own transaction in WorkflowMax but you are not able to generate one independently. You must use one of the methods above.