WIP Schedule (Work in Progress)
A financial report showing the status of all active construction projects relative to cost and billing.
Definition
A WIP (Work in Progress) schedule is a construction accounting report that compares estimated costs, actual costs, billings, and revenue recognized for each active project. It identifies over-billed and under-billed projects and is essential for accurate financial reporting under percentage-of-completion accounting.
Why It Matters
WIP schedules reveal the true financial health of construction projects. They expose fade (projects becoming less profitable) and over-billing situations that distort financial statements.
Examples
Over-billed project
Job has billed $200,000 but only completed $150,000 in work. WIP shows $50,000 over-billing that must be recognized as a liability.
Under-billed project
Job has completed $300,000 in work but only billed $250,000. WIP shows $50,000 under-billing that represents earned but unbilled revenue.
How Nexus AP Helps
Nexus AP feeds accurate, timely cost data into WIP schedules by ensuring invoices are coded and processed promptly to the correct jobs.
Start Free TrialFrequently Asked Questions
How often should WIP schedules be prepared?
Monthly at minimum. Many contractors review WIP weekly during active projects. Bankers and sureties typically require quarterly WIP reports.
What does fade mean in WIP?
Fade is when a project becomes less profitable than estimated, usually due to cost overruns or scope creep. WIP schedules catch fade early.
Category
constructionRelated Terms
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