General Inquiries

WIP Schedule

  • 1.  WIP Schedule

    Posted 04-23-2019 10:49
    There is an ongoing discussion here about when a job should be moved from current to closed projects on the WIP.  I'd really like to hear other companies procedure(s) on when is the appropriate time to move a job from work in progress to completed.

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    Diane Graham
    Accounting Manager
    Provost Construction
    Norfolk VA
    (757) 651-3455
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  • 2.  RE: WIP Schedule

    Posted 04-24-2019 05:18
    When all costs are posted/received including Material, Labor and Subcontract Costs and the Customer has paid in full, we then remove the project from our WIP schedule and mark it “Closed”

    Kimberly M. (Beeler) Peterson
    Chief Financial Officer
    Beeler Construction, Inc.




  • 3.  RE: WIP Schedule

    Posted 04-25-2019 09:07
    We leave jobs in WIP until all billings are done. By definition, if it's billed out, including any change orders, the physical work is done, and costs would therefore all be in. They will often stay on the WIP schedule just waiting for change orders to be approved, and at that point be put on a pay estimate. All our work is for public agencies (bridge contractor) and the DOT's sometimes take a while for approval of the change orders. The costs would already have been incurred most of the time, so our underbillings represents the change order(s) that we are waiting to bill. Receivables and payables don't enter into our thinking when it comes to moving the job to completed.

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    Paul DeRoche BSBA, CPA
    Controller
    MIG Corporation Inc.
    Acton MA
    (978) 264-0123
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  • 4.  RE: WIP Schedule

    Posted 04-24-2019 07:25
    Our policy (Heavy/Highway subcontractor) is to move a job to closed when no further quantities are expected to be performed or recorded under the contract. This means that warranty/rework for minor items or quantity disputes with inspectors will keep a job on the uncompleted schedule. Billings or payables is not a factor for us in determining status.

    This is an operations-centric approach, and in the past, we have occasionally reclassified a few jobs for financial statement presentation (most commonly due to quantity overruns that we will eventually get paid on).

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    Alex Lee CPA/CITP, CCIFP
    Treasurer
    Roy T. Goodwin Contractors, Inc.
    Nashville TN
    (615) 242-5448
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  • 5.  RE: WIP Schedule

    Posted 04-24-2019 07:43
    Edited by Ana Maria Velez 04-24-2019 08:33

    We were advised by our CPA to close them once they were 95% billed and everything after that should be coded to burden. But I have not done that, we cant. We have more cost after billing because of the punch list items and warranties. It has always been a discussion.



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    Ana Maria Velez
    CFO
    Thermal Concepts, Inc
    Davie FL
    (954) 472-4465
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  • 6.  RE: WIP Schedule

    Posted 04-24-2019 07:51

    I close a job when then entire contract amount has been collected, including retainage, and all apparent costs are in.

     

     

    Robert McManus

    Chief Financial Officer

    Direct: 404.965.9349 

    Main: 404.361.5154 | Fax: 404.965.9355

    PO Box 45717 | Atlanta, GA 30320

    www.msrs.com

                

     

     

     

     






  • 7.  RE: WIP Schedule

    Posted 04-24-2019 09:52

    Hello Diane,

     

    We move a project when it is 100% invoiced.  If small costs occur in the same year, we adjust on the CC schedule.  If they come in in a subsequent year, we report them with our smaller miscellaneous projects. 

     

    Good question!  I'm interested to see other responses. 

     

    Vickie Tischendorf, CFO

    Martel Construction, Inc.

    Office: 406-586-8585

    Fax: 406-586-8646

    vickie@martelconstruction.com

     

    "I didn't break the rules, but I challenged the rules".

    Ella Baker

     






  • 8.  RE: WIP Schedule

    Posted 04-24-2019 09:56
    For in house/ our purposes - a job would remain on the WIP until it was paid in full.

    Per our CPA we would move the job if 100% billed.

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    Christine Rivera
    Controller
    Via Technology, LLC
    San Antonio TX
    (210) 227-7726
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  • 9.  RE: WIP Schedule

    Posted 04-24-2019 11:01
    I only close a project when the work is complete, there is a reasonable assumption that there will be no additional costs hitting that job, and the contract is 100% billed and collected, including retainage.

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    Kelsie Schoener
    Controller
    BMF Solutions LLP
    CypressTX
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  • 10.  RE: WIP Schedule

    Posted 27 days ago
    We remove a job from our WIP schedule when the job is 100% billed and all significant costs have been recorded.

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    Eileen Moran
    President
    Moran Electrical Contracting
    Alsip IL
    (708) 597-9011
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  • 11.  RE: WIP Schedule

    Posted 26 days ago

     

    I close a job when we have no remaining committed costs.  We use Sage 300 which makes committed costs very transparent.  I don't want to accrue all of my revenue and then additional costs hit the following month.

     

     

    Ledna Jackson  , CB                                                                        

    Internal Operations, EHS Director

    "Safety Matters Because YOU Matter"

     

    Description: Del-Air Mechanical Contractors Inc

    Del-Air Mechanical Contractors, Inc.

    135 Chickamauga Ave.

    Knoxville, TN 37917

    P-865-525-4119 F-865-521-7043

    www.delairmechanical.com

     

    Contractors of the Year logo FINAL (3) (1)

     

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  • 12.  RE: WIP Schedule

    Posted 04-25-2019 06:41
    We close the job when it has been paid in full including retainage, all costs have been recognized and commissions/bonuses have been paid out.  If anything else comes in, we open up a small warranty job.

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    Jill Morrow
    Vice President / Controller
    IntegriBuilt LLC
    Irving TX
    (972) 505-2800
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  • 13.  RE: WIP Schedule

    Posted 04-25-2019 07:20
    We close the job when it is billed in full and all known costs have been incurred/coded to the job.

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    Scott Bishop CPA
    C F O
    Buist Electric, Inc.
    Byron Center MI
    (616) 878-3315
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  • 14.  RE: WIP Schedule

    Posted 04-25-2019 07:36
    For internal reporting purposes, I only maintain one schedule.  Jobs are removed from the schedule only with the new year.  With the first schedule of a new year (January, for my company), jobs with all anticipated costs posted and with no under or over billed balance are removed.  In the new year, there are invariably a few jobs that were removed that subsequently have additional cost or other unanticipated activity.  If that happens, I add them back to the new year's schedule, but clearly flag the job as closed.  I like the simplicity of having one schedule that contains all jobs with some potential activity in the year - revenue, cost, over/under billings.
    Whether all payments have been received is not a consideration.  That is an issue tracked through AR, not on the WIP.

    For external reporting (annual reports created by our outside auditors), I separate the December WIP so that it contains only jobs that are less than 100% complete and/or have an over/under billed balance.  Jobs that became 100% complete and fully billed with no under/over are reported separately.  These jobs are the ones that are not included in the January report.

    Hope this helps.  If you want more info, I'd be happy to share.

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    Steve Hunt CPA
    CFO
    Alto Construction Company, Inc.
    Tampa FL
    (813) 241-2586
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  • 15.  RE: WIP Schedule

    Posted 04-25-2019 07:37
    When all costs are posted and project is 100% billed.  We also have work that is expected to have inspection costs after completion.  I evaluate how far out these likely are, the value of these costs and either hold the project open, code to burden, OR open a small job to hold the costs later.

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    Lucrezia Esteban
    Controller
    East Muskegon Roofing and Sheet Metal Co., Inc.
    Muskegon MI
    (231) 744-2461
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  • 16.  RE: WIP Schedule

    Posted 04-25-2019 08:29
    We close our projects off the open WIP schedule after we have been final paid and have paid all subcontractors in full.  If we happen to incur any costs after that, we expense them to a closed project cost job as a period expense.  For audit purposes, our CPA moves projects to the completed schedule once we've received all costs and have final billed the contract.

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    Paul Wade
    Vice President of Finance
    RJM Construction, LLC
    Golden Valley MN
    (952) 837-8600
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  • 17.  RE: WIP Schedule

    Posted 04-25-2019 11:23
    Let us first establish the difference between;

    1. Removing a job from a WIP Schedule
        a.) You have billed out the job so you are not under billed
        b.) You have updated your estimated cost to complete so you are not excessively over billed.
              ie. All of your subs/ Suppliers have billed out 100% of their contract or purchase order.
        c.) If both of the above are true then you no longer need to adjust difference of what was billed vs what was earned and you probably are at 95% of your revised cost estimate.  Any additional misc. non contractual costs that come in can still be coded to the job until closed.   And if these misc costs come in the following fiscal year you can still show costs only, on your COGS/Revenue Reconciliation you give to your CPA to generate the year end schedules for; WIP and Completed Contracts.

    2. Closing a job (This is more of Admin SOP)
        a..) Once payment is received in full
        b.) This should trigger paying out retainage, reconciling Large PO's, audit of unpaid invoices, Sales Tax verification and so on...
        c.) boxing the job up, archiving electronic files, etc.


    Removing a job from the WIP Schedule doesn't mean forgetting about the job.  It just means we no longer need to adjust our revenue to what has been earned.

    Best,


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    Jordan Anderson ,CCIFP, CRIS
    Controller
    Holchemont, LTD
    McAllen TX
    (956) 686-2901
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  • 18.  RE: WIP Schedule

    Posted 04-25-2019 13:27
    ​We will close a job a month or two after final billing. This time frame allows trailing costs such as punch list items and late entry suppliers invoices to be entered.

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    Stephen Hadley
    Controller
    Quigg Brothers, Inc.
    Aberdeen WA
    (360) 533-1530
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