How do I use the Remove Credit WIP feature in Time Ledger?

ias-7272

How do I use the Remove Credit WIP feature in Time Ledger?

23rd December 2008

IRIS Time and Fees

How do I use the Remove Credit WIP feature in Time Ledger?

There are a number of ways of clearing unused credit WIP.
Please refer to KB IAS-5665 for recommendations on clearing negative WIP balances on a client.

What is unused Credit WIP?
WIP (Work in Progress) is created when staff post their time on their Timesheets. For example, if Rachel has a charge rate of £15 and she posts 4 hours, then the WIP value will be £60
A Credit WIP balance can be created on the client account. For example client ‘Mr Armitage has -£300 WIP. This credit WIP balance can be created in a number of ways. For example: posting an invoice for future time, posting a write off, opening credit balances and credit general adjustments.
‘Unused Credit WIP’ is the amount of credit on a posting that hasn’t been matched. For example, if you post a credit opening balance for £300 and then a debit £50 opening balance, then the overall balance is -£250 (-£300 + £50 = -£250) of the -£300. Of the originally posted, -250 is unmatched or ‘unused’.

The Remove Credit WIP feature provides a way of clearing the credit WIP amount from the clients account. In the example above, if you used the remove credit WIP feature on the -£250, and then this balance would be ‘removed’ or cleared. This would mean that when you look at unmatched postings on the client’s account, the opening balance will not be displayed.

There are two ways of removing Credit WIP: Reducing the Credit WIP on the client or client job to Zero & Posting a contra entry against the individual posting that is causing Credit WIP.

Reducing the Credit WIP on the client or client job to Zero

 This will help you to remove all the Credit WIP existing on the client quickly and efficiently. To do this:

• Log on to IRIS Time from the IRIS Main Menu
• Click on File | Housekeeping | Remove Credit
• In the Options Tab, enter Period to place the contra postings to. 2009/10 Date for Contra posting. For example 22/10/08
• Click on the Selection tab, enter the Client Identifier for which you would like to remove Credit
• Click on the OK button
• The List of possible unwanted Credit postings screen will be displayed, place a tick next to the posting that you would like to post a contra against.
• Click on the Remove CR button
• A confirmation that the contra posting has been made will be displayed, click on the OK button

Post a Contra entry for the individual posting

This option will help you to remove the Credit WIP against the individual posting that is causing Credit WIP.

• Log on to IRIS Time from the IRIS Main Menu
• Locate the posting that is causing the Credit WIP. To do this: Log on to IRIS Time from the IRIS Main Menu Click on Reports | Client Reports | Billing Decisions
• In the Options tab:
• Under the “Pages Required” section, place a tick next to WIP breakdown, and summary subtotals
• Place a tick next to Include pending postings in report
• Click on the Selection tab, enter the client ID.
• Click on the OK button to run the report.
• Scroll down to the job that has the credit WIP, and the invoice details will be displayed under details.
• Take note of the date, the period and the invoice number

Remove Credit from the original posting.

• Log on to IRIS Time from the IRIS Main Menu
• Click on Enquiries | Account details
• The Time Account Display screen will be displayed, enter the Client ID (or click on the Spy glass, highlight the Client ID, click on the Select button)
• Enter the Client Job ID ( or click on the Spy glass, highlight the Client, Click on the select button)
• In the include section, select Posting
• Highlight the invoice that is causing the Credit, click on the View button
• The Time Ledger posting: Invoice screen will be displayed, click on the remove credit button
• The Remove residual credit from posting screen will be displayed, enter a Time period in which to put a Contra posting to
• Enter a narrative (optional)
• Click on the confirm button
  
  Technical Details

The remove credit WIP feature will post a ‘contra’ entry onto the system to negate the unused credit entry

If you use the remove credit feature, it will clear the negative WIP and adjust the invoice recovery.

This can be reported via the client billing analysis report.

Related Articles KB IAS-5665: How can I clear negative WIP balances on a Client?