How to create a construction WIP schedule
A problem-to-playbook guide to building the work-in-progress schedule your CPA and surety expect - and how to stop rebuilding it by hand every month.
What a WIP schedule needs
A WIP schedule reconciles earned revenue to billings for every open contract. To build one you need five inputs per job: the contract value, costs incurred to date, the estimated total cost, the amount billed to date, and the revenue previously recognized. Everything else is derived.
Inputs per job
- Contract value (original + approved change orders)
- Costs to date
- Estimated cost at completion
- Billed to date
- Previously recognized revenue
The five steps
From inputs to schedule
- 1
Compute percent complete
Divide costs to date by the estimate at completion (cost-to-cost). Guard against a zero estimate and cap at 100%.
- 2
Compute earned revenue
Multiply percent complete by the contract value to get revenue earned to date.
- 3
Find the billing position
Compare earned to billed: under-billing = max(0, earned − billed); over-billing = max(0, billed − earned).
- 4
Compute gross profit
Estimated gross profit = contract value − estimate at completion; earned gross profit follows percent complete.
- 5
Aggregate and post
Total under- and over-billing across jobs, then post the contract asset/liability entries so the schedule ties to the GL.
Common mistakes
- Using the original contract instead of contract value plus approved change orders.
- Forgetting to update the estimate at completion, so percent complete is stale.
- Netting over- and under-billing across jobs instead of showing each gross.
- Leaving the schedule as an export that never ties back to the ledger.
How Fintra does it for you
Fintra derives every WIP row from the jobs, budgets, costs, and billings you already track, posts the contract asset or liability during the revenue-recognition run, and snapshots the schedule each period. Instead of rebuilding a workbook, you review a schedule that already ties to the ledger.
Frequently asked questions
How do you calculate a WIP schedule?
For each job, compute percent complete as costs to date divided by estimated total cost, multiply by contract value to get earned revenue, then compare earned to billed. Earned above billed is under-billing (a contract asset); billed above earned is over-billing (a contract liability). Aggregate across jobs for the company schedule.
What goes on a WIP schedule?
Each open contract with its contract value, costs to date, estimated cost at completion, percent complete, earned revenue, billed to date, under- or over-billing, and estimated and earned gross profit. Company totals for under- and over-billing typically appear at the bottom.
How often should I run a WIP schedule?
Monthly, as part of the close - bonding companies and lenders expect a current schedule. Fintra snapshots the WIP every revenue-recognition run, so you can show it as of any period end and prove how each job’s position moved.
Can Fintra build the WIP schedule automatically?
Yes. It derives the schedule from your jobs, budgets, costs, and billings and posts the contract asset or liability so the schedule ties to the general ledger - no separate monthly workbook to maintain.
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