A WIP schedule that builds itself every close
Fintra computes earned revenue, under-billing (a contract asset), and over-billing (a contract liability) for every job - the work-in-progress schedule your bonding company and CPA ask for, without the monthly workbook.
Illustrative product view
What a WIP schedule is
A work-in-progress (WIP) schedule reconciles what you have earned on each open contract to what you have billed. When you have earned more than you billed, the difference is an asset - costs and estimated earnings in excess of billings. When you have billed more than you earned, it is a liability - billings in excess of costs and estimated earnings. Getting this right is what makes your income statement trustworthy mid-job.
Under- and over-billing
under_billing = max(0, earned − billed); over_billing = max(0, billed − earned)
A job is never both under- and over-billed at once. Under-billing posts as a contract asset; over-billing posts as a contract liability.
How Fintra computes each WIP row
| Column | How it is derived |
|---|---|
| Contract value | Original contract + approved change orders |
| Estimate at completion (EAC) | Cost-to-date + cost-to-complete |
| Percent complete | Cost-to-date ÷ EAC (cost-to-cost) |
| Earned revenue | Percent complete × contract value |
| Under-billing (asset) | max(0, earned − billed) |
| Over-billing (liability) | max(0, billed − earned) |
| Estimated gross profit | Contract value − EAC |
Why bonding and banks live on the WIP
- Sureties read the WIP to gauge whether you are front-loading billings and borrowing from future cash.
- Over-billing inflates cash today but is a liability you must still perform against.
- Under-billing means you have financed work you have not invoiced - a cash drag you can fix on the next draw.
- A clean, current WIP is often the difference between a bond increase and a decline.
From estimate to posted entry
The WIP schedule is not a static export. When you run revenue recognition, Fintra posts the balancing journal entries - moving earned revenue and the contract asset or liability into the GL - so the schedule and the ledger always agree. Pre-close checks warn you if a job has no estimated cost, because percent complete cannot be computed without it.
Frequently asked questions
What is a WIP schedule in construction?
A WIP (work-in-progress) schedule lists every open contract with its contract value, costs to date, estimated cost at completion, percent complete, earned revenue, and the difference between earned and billed revenue. That difference is shown as either costs in excess of billings (an asset) or billings in excess of costs (a liability).
What are costs in excess of billings?
Costs in excess of billings - also called under-billing or a contract asset - is the amount by which revenue you have earned on a job exceeds what you have billed. Fintra computes it as max(0, earned revenue − billed revenue) and posts it as a contract asset so your balance sheet reflects work you have performed but not yet invoiced.
What are billings in excess of costs?
Billings in excess of costs - over-billing or a contract liability - is the amount by which you have billed a job beyond the revenue earned. Fintra computes it as max(0, billed − earned) and defers it as a contract liability, so over-billing does not overstate your income before the work is done.
Do I have to build the WIP schedule manually?
No. Fintra derives every WIP row from the same jobs, budgets, costs, and billings you already track, then snapshots it each period during revenue recognition. There is no separate monthly workbook to reconcile against the ledger.
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