Question on WIP = Cost Value in Jobs 5.0

Jaco

Hi there,

I'm a little bit puzzled by the formula for WIP method "cost value" for jobs in nav 5.0.

The formula for "cost value" is:
Contract (Total Price) * Usage (Total Cost)
Schedule (Total Price)

minus

Schedule (Total Cost) * Contract (Invoiced Price)
Schedule (Total Price)

Let me use an example for the question that I have:
Resource:
Unit cost = 100
Unit price = 250

On a job you have the following lines:
Schedule = 25 hours (25 * 100 = 2500)
Contract = 10 hours (10 * 250 = 2500 and you're not going to invoice all hours to a customer)


You have used and invoiced 10 hours!

Calculating WIP (according to the formula) will result in:
2500 * 1000 = 400
6250

minus

2500 * 2500 = 1000
6250

Result: WIP = -600

The question is: What is this value of -600 telling me?
Is it an anticipation of costs to come? Or is there another interpretation possible?