Introduction: Status Allocations and Invoice Amounts

Recorded hours, status updates and invoice allocations are three fundamental concepts in Kompass.

• Most organizations will record the hours their employees worked against a project.
• Status updates will be used to record the current status of works. This will be a key value especially for long projects that lasts several months.
• Through the status update (a.k.a. valuation) defined by the project manager of the project, accounting will raise invoices with accurate allocations by proposal item.

Invoices are normally raised against work that has been carried out. That amount of work could be:

• A percentage of works (lump sum quote items)
• A number of rates (rate quote items)

The more direct iteration of those values can be seen below. Employees recording their hours (filling up a "jag" of hours) which are then being evaluated by the manager (valuations "jag") and ultimately being invoiced (invoices "jag). 

Occasionally, recorded hours, status updates and invoice allocations might not appear as balanced as seen above. Below, we will examine four separate cases.

Increased Valuation

• Project manager might decide to increase the valuation therefore, suggesting the magenta valuations jag. That could be done either by recording a status larger than the percent of hours used in the project or by adding more rate items than actually worked. For example, employees might completed all works in half the budgeted time. Or the project manager might decide to valuate a larger percentage to cover some expenses, i.e. even though employees have completed just 60% of works, project manager claims 90%

  

  In Kompass, you can find such examples in the status update window. In the example below, in the proposal item 191120 there is a 2% of hours recorded. However, project manager's valuation suggests a 42% completions of works allowing accounting to invoice more than what the percent of recorded hours might suggest.

Reduced Valuation

• Contrary to the case above, project managers might valuate less than what the working hours are suggesting leading to the light green valuation jag. In such cases, proposal item will probably overrun since employees have used excessive hours to complete a small proportion of works. For example, they might have recorded 60% of budgeted hours and they have only completed 30% of works. However, this might occur for other reasons and employees might quickly catch up with the rest of works.

  

  In Kompass, you can find such examples in the status update window. In the example below, in the proposal item 188900 there is a 100.38% of hours recorded. However, project manager's valuation suggests a 96% completions of works allowing accounting to invoice less than what might be expected based on worked hours.

Increased Invoiced Amount

• Accounting could also deviated from project managers' valuations. On this example, they have invoiced more (magenta jag) than what the project manager evaluated. Once again, reasoning for such an invoice might vary. The point is though that valuation and invoiced amount do not need to be the same and Kompass allows users to treat those two values separately. 

  

  In Kompass, you find such examples in the valuations section of the finance tab of the project. In the example below, for Subsurface Engineering, the aggregated valuation is $39,600.11 while accounts over-invoiced $40,016.67. A negative WIP of $416,56 is recorded.

Decreased Invoiced Amount

• Finally, on this example, accounts have invoiced less (light green jag) than what the project manager evaluated.

  

  Heading back to the valuations section of the finance tab of the project for Digital Engineering, the aggregated valuation is $51,200.00 while accounts invoiced $39,600. Effectively, $11,600.00 can be invoiced based on the project manager valuation.