Key concepts
You will learn some terminology and important accounting concepts that will help as you work with Ajera.
To learn about more concepts and general processing, be sure to see How Ajera Works.
Work-in-progress (WIP)
What is WIP?
Work-in-progress (WIP) is billable time and expenses that have not yet been included on a client invoice with a status of Final.
When does WIP get created?
When you enter:
- Timesheets
- Expense reports
- Vendor invoices
- In-house expenses
- Beginning balance unbilled WIP
When does WIP get adjusted?
When you:
- Change time, expense reports, or vendor invoices.
- Adjust, move, or split WIP in
> - Change billing rates after WIP is created.
How does the amount spent affect WIP?
Amount spent (also called spent value) is the cost of effort expended on a project if you are able to achieve your assigned billing rates. Amount spent is determined by the billing rate table.
Ajera assigns the amount spent when cost is incurred. For example, Ajera assigns labor an amount spent when hours are entered on a timesheet. Ajera assigns an amount spent for expenses and consultant costs entered in vendor invoices or in-house expenses. The amounts are reflected in your WIP and Unbilled Revenue accounts on the general ledger.
