How To: Pay Manage Daily Work Orders

1.    Background

In the oil field services business, vendors often create a 'daily work order' in order to record all the activities and time devoted to performing work for that day.  The work order charges are then signed-off (authorized) by a supervisor for the customer.  A work order may contain charges for hourly time for workers and equipment, charges based on non-hourly activity (e.g. a day rate or units of activity), or charges for third party subcontractors that are passed through to a customer.  The Logger's Edge now allows you to create a daily work order and create an invoice that summarizes a set of daily charges

2.    Steps

You first need to check the 'Enable Construction' in Basic Setup:

This setting will enable the daily work order functionality in The Logger's Edge.

Set Up a Job

The first step in creating a daily work order is to set up a 'Job' or 'Project' against which your time and other activities will be charged.  By enabling the construction item, a new icon will be enabled in .

Clicking on the Job/Project setup will activate a wizard that allows you to identify all the attributes for the Job.

The wizard screens (after an intro screen) are as follows:

(1)    Basic Job Information.  This screen allows you to provide a code and description for the job.  The Daily WO# Prefix is used as a prefix for daily work orders as they are created.  In The Logger's Edge there is a unique sequence number that is automatically assigned to each daily work order.  The prefix is appended so that it is easier to group entries by their project.

(2)    Basic Contract Information.  In The Logger's Edge there is a revenue contract that is created for each job  (There is a one-to-one relationship).  This screen allows you to identify the customer for the job and the start and end dates.

When setting up a job, a symmetric revenue contract is set up behind the scenes.  Each job has one (and only one) revenue contract.  The naming convention used for this revenue contract is:

(3)  Create set up lists for valid entries.  In The Logger's Edge you can set up lists (up to a maximum of 5) that are used when entering a daily work order.  These lists may be for job attributes such as AFE, specific work site or location, lease #, etc.  When entering a daily work order, you would then select one of the valid entries.  These items are used when a specific job has multiple (not one-to-one) valid items.  For example, in the screen below, there are 3 AFE's entered  -- indicating that when you enter a daily work order for the job, you will have to select the applicable AFE.  Note:  if there is only one entry, this entry is auto-filled on the daily work order.

So, how are these lists configured?  You need to navigate to File | Administrative Options | Setup JParts (See Below).  You can activate up to five parts that will trigger the wizard to provide an entry screen as above.

 

(4)    Set up job specific rates.  The next step allows you to enter job specific billing rates for your workers.  These are the rates that will be used to determine how your charges will be calculated.

The worker rates that you enter here can cover hourly activity as well work that is billed on a day rate or 'piece' basis.  The rates entered here only apply to the specified job.

If you do not enter a rate for a worker/activity,  The Logger's Edge will utilize a 'general' charge out rate for the worker.  A general charge-out rate is one that is not 'revenue-contract' specific, meaning that it can cover multiple jobs.  We recommend that if you want to use general rates, you should set them up under Setup | Workers | Employee Charge Out Rates and create an entry for the worker where you set both the activity and the revenue contract to NONE.  That way, if the system does NOT find a rate that is specific to the job & activity you put on the entry in your work order, it will use the rate for that worker with the NONE activity/revenue contract.  (We recommend that all WORM users leave the charge-out rate column under  Setup | Workers | Worker Base Rates set to $0 for all workers.)

The next step is to set up equipment specific (as opposed to worker) rates.

Again, if you do not enter a rate for a machine,  The Logger's Edge will utilize a 'general' charge out rate for the equipment.  General charge-out rates for equipment are set up from the main menu under Setup | Equipment / Trucks | Equipment | Equipment Charge Out Rates.

(5)  Finish.  You need to click the finish screen (not shown) to save your entries.

Entering a Daily Work Order

Once you have set up a Job/Project, you are ready to enter a daily work order.  Navigate to Data Entry | Daily Work Orders.

This select brings up the standard split view screen.

You can add a work order entry by clicking the 'Add' button.  You can edit an entry by double-clicking on the row.  This view does NOT, however, support edits directly in the grid.

Key Note:  Before adding a daily work order record be sure that you have a pay period for invoices already set up for the date of the work order.  Otherwise, you will NOT be able to save the work order.

The daily work order entry/edit form is as follows:

Let's look at each section of the daily work order in detail.

(1)  Header Information.  This section contains the basic project information and well as the date the work was performed.

The list boxes for the configurable lists contain only the valid entries you identified in the Job/Project set up wizard.  Each job/project has its own exclusive lists.  Note that if there is only one item in a list, it is automatically selected when you select the project.

(2)  Status Information.  The status information allows you to track the daily work order's payment status.

The Daily WO# is the number assigned by The Logger's Edge and is created upon the initial save of a daily work order.  The number is unique and appends the prefix (if any) that you have assigned in the Job setup.  The checkbox 'submitted for approval' should be checked when you have submitted the work order to obtain authorization for payment by your customer.  The checkbox 'approved' is used to indicate that you have obtained signed authorization and the work order can be invoiced.  If the work order has already invoiced, the invoice # field will contain your invoice number.

You can store the address of a PDF file along with the daily work order.  Once you have obtained company authorization for payment, you should scan the paper copy and save the file in PDF format.  The file should be named XXXX.pdf, where the XXXX is the daily work order number (RE-130) in the above example.  It should be save in a directory named 'WO_PDFs' underneath you application directory.  If you follow these instructions, your pdf files will automatically show in the work order window.  Alternatively, if you want to save your pdf files using another naming convention or in a different location, you can use the 'PDF' button to browse to that file location and then save the location along with the daily work order.

The detailed activity screens are as follows:

1.    Worker Hours.  This grid is used to enter to hours for workers whose time is charged out.  The rates entered here are for the worker alone -- If a worker's rate is included in a machine's rate, then the hours should be entered on the tab for Equipment Hours.

The columns are:

Technical Notes:

    1.    When saving a work order, 3 records are written into the invoice details table for worker hours:

        1)  One record is inserted for the main activity and reflects the hours and charges for the sum of the regular, overtime and double-overtime amounts;

        2)  A second record is written for the transportation hours and charges (if non-zero); and

        3)  A third record is written for any subsistence charge.

These records provide the basis for creating a customer invoice.  All charges are calculated and stored when the daily worker over is saved.  You do NOT need to run the invoice calculator -- Indeed, daily work order entries are specifically excluded from the invoice calculator logic.

    2.    When saving a work order, symmetric records are written into their associated details tables.

        1)  The hours for regular, overtime and double-overtime are written into the TIME_DETAILS table in the columns: CHARGEABLE_HOURS,  CHARGEABLE_HOURS_OT, and CHARGEABLE_HOURS_DBL, respectively.  The sum of these hours are also written into the UNITS (hours) column in order to pay the worker.  The overtime rules specified in The Logger's Edge are used to pay the employees, regardless of what time is actually charged a customer.  If the hours are performed by a contract worker, the hours are written into the TIME_DETAILS_CONTRACTORS table.  These hours are all written using the activity specified on for the daily work order line item.

        2)  Transportation hours are written as a second entry into the TIME_DETAILS (or TIME_DETAILS_CONTRACTORS) table.  The hours written into the columns CHARGEABLE_HOURS and UNITS.  The activity is the activity specified with a type of 'Travel'.

        3)  The subsistence charge is written into the MISCELLANEOUS_INCOME table.

        4)  The worker reimbursement is written into the EMPLOYEE_EXPENSES table, if the worker is an employee, and into the MISCELLANEOUS_EXPENSES table if the worker is a subcontract worker.

he above entries provide the basis for creating an employee's payroll statement or a contractor's pay statement.  In order to create these statements, you must run the pay calculator for the period in question.

A Note on Rates

The billing rates for activities (such as worker or equipment hours) are auto-filed by The Logger's Edge using the following rules:

You can always enter a new rate or override an existing rate entry.

2.    Equipment Hours.  This grid is used to enter to hours for equipment whose time is charged out.  The rates entered here are for either (1) the equipment alone (using the dry rate), in which case you would enter the operator's time on the 'Worker Hours' tab, or (2) the combined equipment/operator rate,  in which case you would NOT enter the operator's time on the 'Worker Hours' tab.  Of course, if you want to track the operator's time, but not bill it, you can enter the hours on the 'Worker Hours' tab and zero-rate it.

The columns are:

Technical Notes:

    1.    When saving a work order, 2 records are written into the invoice details table for equipment hours

        1)  One record is inserted for the main activity and reflects the hours and charges for regular hours;

        2)  A second record is written for the standby hours and charges (if non-zero).

    2.    When saving a work order, symmetric records are written into their associated details tables.

        1)  The hours for regular hours are written into the TIME_DETAILS_EQUIPMENT table in the column CHARGEABLE_HOURS.  These hours are also written into the UNITS (hours) column and are used to (1) either pay the equipment owner or (2) calculate the internal job cost for company-owned equipment.  These hours are all written using the activity specified on for the daily work order line item.  If the equipment unit is owned by a subcontractor (meaning it is not company-owned), the hours are written into the TIME_DETAILS_CONTRACTORS table with a worker of 'NONE'.

        2)  Standby hours are written as a second entry into the TIME_DETAILS_EQUIPMENT (or TIME_DETAILS_CONTRACTORS if not company-owned) table.  The hours written into the columns CHARGEABLE_HOURS and UNITS.  The activity is the STANDBY activity.

The above entries provide the basis for creating an a contractor's pay statement or calculating you own equipment costing on the job.  In order to create these statements, you must run the pay calculator for the period in question.

3.    Third-Party Charges.  This grid is used to enter to charges for goods and services that you have purchased from third parties.  For example if you hired a contract welder, paid a lump sum for use of a camp or needed to purchase culverts, you would record the cost of those goods and or services here.

The columns are:

Technical Notes:

    1.    When saving a work order,  one record is inserted into the invoice details table to reflect the third-party charge;

    2.    One record is written into the miscellaneous income table to reflect the income from the transaction; and

    3.    One record is written into the miscellaneous expense table to reflect the expense you incurred.  The miscellaneous income and expense records are tied together though the MISCELLANEOUS_EXPENSE_CODE field on the miscellaneous income table that equals the CODE field on the miscellaneous expense table.

4.    Non-Hourly Charges.  This grid is used to enter to charges for workers that are charged on a basis other than hours.  For example a supervisor might be billed out a day rate or driver might be charged based on mileage.  If the charge includes the cost of a machine, enter the item on the 'Additional Charges' tab.

The columns are:

Technical Notes:

    1.    When saving a work order, one record is inserted for the activity into the invoices details table and reflects the units of activity, the basis and the associated charges;

    2.    When saving a work order, symmetric records are written into their associated production details tables.  If the worker is an employee, a record is written into the PRODUCTION_DETAILS table; if the worker is a contract worker, the record is written into the PRODUCTION_DETAILS_CONTRACTORS table.

5.    Additional Charges.  This grid is used to enter to additional charges non-hourly charges for equipment.  For example a chainsaw or crew cab might be billed out a day rate.

The columns are:

Technical Notes:

    1.    When saving a work order, one record is inserted for the activity into the invoices details table and reflects the units of activity, the basis and the associated charges;

    2.    When saving a work order, symmetric records are written into their associated production details tables.  If the worker is an employee, a record is written into the PRODUCTION_DETAILS table; if the worker is a contract worker, the record is written into the PRODUCTION_DETAILS_CONTRACTORS table.  If the worker is blank (=NONE), the record is written into the PRODUCTION_DETAILS table, but because the worker is NONE, the entry attracts to payment.

If you need to pay the owner of the equipment (because it is not company-owned) you need to specify a worker to reimburse who works for the same company that owns the equipment.  Alternatively you can set up the equipment unit as a rental unit.

6.    Description.  This tab allows you to provide a short description as to the work performed.  This description will appear on your invoice to the customer.  The additional notes/comments entry box allows you to provide any further details that you feel are salient to the work.

Printing the Daily Work Order

You can use the Print Button to Print or Preview your work order.

Before you print, you will be prompted to save your work order.

The following link provides a sample printout of the daily work order: RE-130.pdf

The printout contains a detailed itemization of the charges and as well as a summary of the charges (show below)

The printout also has authorization lines that allow you to have the work signed-off by the customer's job manager/supervisor.

As noted above, you can use the invoice status checkboxes to track whether the work order has been submitted for approval or approved.

Invoicing Your Customer

Once you have a set of daily work orders that have been approved, you are ready to prepare an invoice to bill your customer.  The invoice provides a summary of all the daily charges that have been approved.

To create an invoice, navigate to Reports | Invoices | Generate Work Order Invoices

You will be prompted with a list of all your daily work orders that have not yet been invoiced:

By default, the selection list shows all daily work orders that have not already been invoiced from the start of the current month until today.  You can alter the date range and then click the green button to refresh the list.  The work orders are grouped first by customer, and then by project/job for each customer.  The will create one invoice for each customer / project combination.  More specifically, an invoice will only have the work orders for a single project.

Once you have the work orders that you want to bill, click OK.

This action generates a grid view that replicates each of the selected work orders.  Each daily work order is separated by a page break and can be printed from the grid.

In order to produce an invoice that summarizes the work orders, click on the 'View Statements' button.  Select the invoices you want to print.  Each invoice will be presented as a 'Crystal Report'.

The invoice includes a row for each daily work order.  The row includes the WO order reference, the short description of the work and the total amount. 

The invoice is actually a "tentative" invoice and is not finally saved until you click on the Save/Exit button from the statement grid.  This process allows you to review each invoice making actually saving it.

When you save an invoice, the invoice number is then posted each to each of the daily work orders included on the invoice.  As noted above, the invoice number will then appear on each daily work order.

Technical Note:  Your system must be configured for using the daily work order crystal reports in order for the "View Statements" button to work.  Log on as the administrator (with a Caribou support representative), and go to File | Configure Statements & Invoices | Basic Statement Types.  Ensure the following entry is there:

(If you are running a SQL database, the file name must be:  WOInv1SQL.rpt.)

Next, go to File | Configure Statements & Invoices | Statement Headers and ensure the following entry is there:

Finally, make sure that the customer is set up to use this statement type code.  To do so, select Setup | Customers.  Ensure that the "Invoice Type Code" column (far right) is set to "WO Invoice" for the customers for whom you are generating work order invoices.

 


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