How to use the Work in Progress chart in VOGSY

VOGSY’s Work in Progress (WIP) chart is a valuable financial tool that provides insights into the financial status of your ongoing projects by comparing actual and accrued costs against invoiced amounts. This helps businesses understand their short-term financial position, manage cash flow, and ensure accurate revenue recognition.

This chart is the most critical management tool for detecting and preventing revenue leakage.

Revenue leakage due to unbilled Work in Progress (WIP) or tracked time is a significant concern for every professional services organization.

With this chart, this risk can be effectively mitigated.

The WIP chart breaks down financial data per department and visualizes it month by month. The key metrics include:

• Actual Costs: This represents the costs incurred on projects, including the cost of resources based on their tracked time and internal cost rates, as well as other direct project expenses.  

• Invoiced: This shows the amount already invoiced to customers for the work completed on projects.  

• To Be Invoiced: This metric indicates the value of the work that has been completed but has not yet been included in an invoice. It represents accrued revenue that is yet to be billed.

• Balance (WIP): This is a crucial metric calculated as:

  Balance=(Invoiced+To be invoiced)−Actual Costs  

A positive balance means that invoicing fully covers your costs. A negative balance suggests that invoicing may be lagging behind project costs, an early warning of potential revenue leakage.

VOGSY offers filtering options to refine the data presented in the WIP chart:  

• Month: View the WIP status for a specific month.  

• Year to Date (YTD): See the accumulated WIP data from the beginning of the year up to the selected month.

• All Open Projects: Include WIP data for all currently active projects.  

A valuable feature of the WIP chart is the ability to drill down into the data for more detail. You can access a more granular view by clicking on a department's representation in the chart. This allows you to:  

• See a list of projects within that department contributing to the WIP.

• Click on individual projects to view their specific WIP details on the project card.