A work-in-progress (WIP) schedule is a dated snapshot of every open construction job. It compares each contract’s value, estimated final cost, costs incurred, progress, earned revenue and billings so you can answer three practical questions: Are we making money on the job? Are we billing ahead of or behind the work? What will a lender or surety see when deciding how much credit or bonding capacity to extend?
Read the schedule from the estimate first, then test whether the billing position makes sense against physical progress, cash and current job information. A single underbilling or overbilling is a signal to investigate, not a verdict on the company.
As an Amazon Associate I earn from qualifying purchases.
What a WIP schedule tells you
A WIP schedule covers contracts that are still open at a specified reporting date, often month-end. It links project-level job costing to the revenue recognized for financial reporting and to the amounts invoiced to the customer. AICPA & CIMA describes the schedule as a way to calculate revenue earned through a reporting date and support project and financial oversight. The Construction Management Association of America (CMAA) emphasizes that underbillings, overbillings, cash flow and gross profit deserve review together.
The Tool Desk
Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →The schedule is not simply an invoice register. Contractors generally recognize revenue as work is performed, using a measure such as cost-to-cost percentage of completion. As Rob Mercado, CPA, CCIFP, managing director at CBIZ, explains in AICPA & CIMA’s April 24, 2026 guidance, “The work-in-progress schedule allows us to calculate at that moment how much revenue was earned through that date.” In the same article he notes that revenue is generated through a percentage-of-completion calculation, not merely by requisitioning a customer.
#1 Best Overall
- Valued Carpenter Pencil Set: You will get 2 pcs solid carpenter pencils with 26 piece 2.8 mm refills, 1 replaceable sharpener, 1 plastic storage box.The complete carpenter pencils combination allows you to finish your work faster and more easily
- Deep Hole Marker Pencil: The deep-hole construction pencils adopts 45mm elongated tip design, which is more convenient to mark in the small hole or in other tight areas that other carpenter markers cannot reach
- Carpenter Pencils with Sharpener: The sharpener is screwed into the top of the work pencil, which won't get lost either. Built-in pencil sharpener that keep the lead with pointed and smooth to Improves line of sight in fine work
- Stronger Solid Lead: This work pencil is matched with a 2.8 mm thick lead , which is much thicker and stronger during the drawing process of construction work, it will not break or damage easily
- Marks on Various Surfaces: 3 colors solid construction pencil can marks on various surfaces,such as metal, plastic, wood, paper etc. Ideals for woodworkers, contractors, craftsmen, builders, merchants and masons
The three questions to ask first
- Profit: Does the current estimate still show a gross profit, and is that profit improving or fading?
- Billing: Are billings ahead of or behind the revenue earned by the reporting date?
- Risk: Do the estimates, cash position and remaining work support the amount of bank credit or bonding being requested?
Those questions require the whole row and its trend over several periods. One column cannot establish whether a project is healthy.
Learn the columns before interpreting them
Column labels differ by accounting system, but a useful WIP row normally contains the following information. Confirm the definitions used by your accountant before comparing rows or periods.
| Column or measure | What it represents | Reading caution |
|---|---|---|
| Contract price | The contract value included in the schedule, generally including approved change orders when they have been incorporated into the contract amount. | Check whether pending, unpriced or unapproved changes are excluded. |
| Estimated total cost | The latest forecast of all cost required to finish the job. | A stale or optimistic estimate changes every downstream percentage and profit figure. |
| Costs incurred to date | Job costs recorded through the reporting cutoff. | Late postings, miscoding or unusual material treatment can move progress into the wrong period. |
| Percent complete | The selected measure of physical or financial progress; cost-to-cost is common. | It is only as reliable as the estimated total cost and the cost cutoff. |
| Earned revenue | The portion of the contract price recognized as revenue through the reporting date. | It is not the same as invoices issued or cash collected. |
| Billings or requisitions to date | Amounts invoiced under the contract through the date. | Invoices may be unpaid, held as retainage or disputed. |
| Estimated gross profit | Contract price less estimated total cost. | Compare the current estimate with prior forecasts to identify profit fade. |
| Under/overbilling | The difference between earned revenue and billings, using the schedule’s sign convention. | Some schedules show earned revenue minus billings; others show billings minus earned revenue. Verify the sign before calling a balance positive or negative. |
Calculate progress, earned revenue and gross profit
For a cost-to-cost schedule, the basic calculations are:
What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
- Percent complete = costs incurred to date ÷ estimated total cost.
- Earned revenue = percent complete × contract price.
- Estimated gross profit = contract price − estimated total cost.
For example, a $1,000,000 contract with $850,000 of estimated total cost and $600,000 of incurred cost produces a cost-to-cost percentage of approximately 70.6% ($600,000 ÷ $850,000). Earned revenue is about $706,000 ($1,000,000 × 70.6%), and estimated gross profit is $150,000. These calculations describe the method; they do not replace the accounting policy or the project manager’s assessment of actual progress.
Cost-to-cost is not the only possible measure. Contract terms and the applicable accounting framework may require another approach, and delivered-but-uninstalled materials may be treated differently. Use the method consistently and document material judgments.
Worked example: two jobs with different billing positions
Jeremy Qualls, CPA, EA, uses illustrative figures in his June 24, 2026 guide to show how the same schedule can reveal opposite billing positions. They are examples, not industry statistics.
Rank #2
- Ergonomically Designed: Work in tight areas with a compact design that gets into tough spots
- Both tools are designed to fit into difficult to reach spaces
- Complete a wide range of applications with a high-performance motor that delivers up to 300 UWO, and an impact driver delivering up to 1,400 in-lbs of torque
- Both the DEWALT impact driver and drill driver feature integrated LED work lights with a convenient 20-second delay, ensuring enhanced visibility in dimly lit or challenging work areas
- One-Handed Loading - Keep one hand free with a 1/4 in. hex chuck that accepts 1 in. bit tips
| Measure | Job A | Job B |
|---|---|---|
| Contract price | $1,000,000 | Not stated in the example |
| Estimated total cost | $850,000 | Not stated in the example |
| Costs incurred to date | $600,000 | Not stated in the example |
| Reported earned revenue | $706,000 | $466,000 |
| Billings to date | $650,000 | $500,000 |
| Billing difference | $56,000 underbilling | $34,000 overbilling |
Job A has earned more revenue than it has billed, so it is underbilled by $56,000. Job B has billed $34,000 more than its reported earned revenue, so it is overbilled by that amount. Before drawing conclusions, confirm how the schedule labels the difference and investigate the cause.
PC Slower Than It Used to Be?
A free scan shows the junk files, broken settings and background clutter dragging Windows down - then fixes them in one click.Free scan · Windows 10 & 11Outdated Drivers Are Slowing You Down
One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchUnderstand underbilling and overbilling
Underbilling: earned work is ahead of invoices
An underbilling occurs when earned revenue exceeds billings at the reporting date. It can result from delayed requisitions, costs that moved into the books before the related billing milestone, cost overruns, or change-order work performed before its price was approved and billed.
CMAA points out that an underbilling is not automatically a failure. The contract may require a billability criterion that has not yet been met, or a change order may be approved in scope while price approval is still pending. Ask the project manager and contract administrator which explanation applies, then determine when the amount can be invoiced and collected.
Overbilling: invoices are ahead of earned progress
An overbilling occurs when billings exceed earned revenue. It can improve short-term project cash flow because the customer has paid, or may soon pay, for work that the accounting schedule has not yet recognized as earned.
Overbilling is not free profit. CMAA warns that if those funds are spent on another underbilled or loss-making project, the contractor may lack the cash needed to complete the overbilled job. The organization’s guidance stresses that overbilling should be represented by cash in the bank. Test that statement against actual receipts, not merely issued invoices.
Check the sign convention
Some schedules calculate the difference as earned revenue minus billings, making a positive number an underbilling. Others calculate billings minus earned revenue, making a positive number an overbilling. Write the formula at the top of your review and use the schedule’s own labels; otherwise a correct number can be interpreted backward.
Rank #3
- 【Great Compatibility】This Katerk 1/4 inch hex shank bit holder is specifically designed for 1/4 inch hex shank drill bits. It's compatible with most 1/4 fast hex handles, hex sockets, various electric screwdrivers, and handheld screwdrivers. The bit holder makes it a valuable addition for any handyman.
- 【Secure and Safe】Built with a secure backup nut design, each drill bit holder securely locks onto your bits, ensuring they stay firmly in place. Additionally, our bit holder incorporates a high-quality steel ball rolling design that holds up to several kilograms of weight, ensuring your various drill bits don't fall off.
- 【Easy One-Handed Operation】The bit holder for impact driver allows you to change bits single-handedly, simplifying your workflow. Its multi-color design further allows for quick identification of the drill bit you need.
- 【Compact and Convenient】Thanks to its compact size, this 1/4 inch bit holder is easy to carry around. The bit holder allows for easy attachment to various tools, making this a convenient addition to your construction accessories. The Katerk bit holder is cast from high-quality alloy material, promising a long product lifespan. Despite its rugged strength, the bit holder remains lightweight, making it portable.
- 【Cool Christmas Gift For Men Stocking Stuffers】 This screwdriver bit holder, driver bit holder, impact bit holder, can be given as a gift to your loved one, especially for anyone involved in construction or electrical work. It's a must-have for stocking stuffers for men and women, tools gifts for dad, tech gadgets for men, gifts for dad, gifts for him, gifts for husband, gifts for boyfriend, cool gadgets for men, and cool gifts for dad.
Billing is not cash
A billing balance describes timing between earned revenue and invoices. Cash depends on whether the customer has paid, whether retainage is withheld, and when the contractor must pay suppliers, subcontractors and employees.
For each significant job, reconcile the WIP row to:
- Accounts receivable, separated into current amounts, disputed balances and retainage.
- Actual cash receipts deposited during and after the reporting period.
- Accounts payable and committed costs still due to subcontractors and vendors.
- Actual cash payments and the forecast of cash required to finish.
Keep retainage distinct from earned revenue. Retainage affects collection timing and liquidity; folding it into earned revenue obscures the project’s performance measure.
A step-by-step monthly reading process
- Set the reporting date. Confirm the period covered and the job-cost cutoff. A cost or invoice posted after the cutoff belongs in the correct period, not wherever it is easiest to enter.
- Confirm the contract value. Tie the contract price to the executed agreement and approved change orders included in the schedule. List pending, unapproved or unpriced changes separately.
- Refresh the estimate at completion. Ask the project manager for remaining quantities, subcontract commitments, purchase orders, labor needs and likely claims. Replace optimistic or obsolete costs with a supportable forecast.
- Reconcile incurred costs. Compare the schedule with the job-cost ledger. Investigate late invoices, duplicate entries, costs posted to the wrong job and labor or equipment allocations that do not reflect work performed.
- Recompute the progress measure. Recalculate percent complete using the approved method. If delivered materials are counted before installation, determine whether that treatment is permitted for the contract and accounting policy; the approach described in Qualls’s guide warns that counting them can overstate progress.
- Validate earned revenue. Multiply the approved progress measure by the contract price, or apply the contract’s specified method. Document unusual constraints, such as a milestone or output measure.
- Compare earned revenue with billings. Apply the schedule’s sign convention and quantify the difference. Trace material variances to billing eligibility, customer approvals, change orders or cost timing.
- Trace the billing balance to cash. Review receivables, retainage, collections, payables and payments. A large overbilling with no corresponding cash requires immediate explanation.
- Compare with prior months. Look for profit fade, rising underbillings, unexplained jumps in progress, or overbillings that are financing unrelated work. Record the cause and the owner of each corrective action.
- Discuss exceptions with operations. The accountant should review the row with the project manager, superintendent and contract administrator. Their knowledge of installed quantities, pending directives and schedule delays is necessary to assess the numbers.
Checks that prevent misleading WIP results
Use a current estimate at completion
Percent complete uses estimated total cost as its denominator. If the forecast omits a subcontract change, productivity loss or remaining material, the denominator is too small, percent complete is overstated and earned revenue can be recognized too early. Reforecast whenever scope, production rates or market costs change, not only at year-end.
Separate approved, pending and unpriced changes
Work may begin before the owner approves a change or agrees on its price. Show the cost and the potential recovery separately until the contract and accounting policy support including it in contract value. Otherwise the schedule can show an apparently severe underbilling or an overstated margin.
Protect the job-cost cutoff and coding
Late supplier invoices and payroll corrections shift costs between periods. A coding error can make one job look over budget while another appears unusually profitable. Require a cutoff checklist and reconcile subledgers before releasing the WIP.
Rank #4
- Long Nib and Deep Hole Marker: Our mechanical carpenter pencil with 45mm nib is designed for easy marking of deep holes or narrow areas. These construction pencils are the great choice for woodworking tools, construction tools, carpenter tools, contractor tools, wood carpentry tools and architect tools
- Extra Refills in 2 Colors for Versatile Marking: The construction mechanical pencil comes with 12 extra 2.8mm refills, including 6 red and 6 black refills. The black refill is suitable for light surfaces, while the red wax is perfect for dark surfaces. Our carpenter mechanical pencil makes sure that you'll have an ample supply for extended use
- Built-in Sharpener: Our construction pencil comes with a built-in sharpener to ensure the mechanical pencil tip is always sharp and ready for use. Never buy an extra pencil sharpener again. A great tool for any woodworker pencil, contractor pencils. The refill can easily be extended or retracted with a simple click of the pencils mechanical, allowing you to work more efficiently and accurately
- Portable Clip Design: Our deep hole construction pencil features a portable clip design, easy to carry and attach to your pocket or tool box, so that you can keep the carpenter pencils mechanical close at hand, making it a convenient tool to have on the go. Great gifts choice for carpenters
- Stronger Pencil Lead: The black refills are made of lead, sturdy and smooth. The red refills are made of wax, clear and light. These marking pencils are much thicker and stronger than normal pencils during the marking process of construction work, suitable for various surfaces, such as glasses, metal, boards, floors, walls, furniture, etc. The written marks can be easily wiped with a wet paper towel when needed
Review material treatment
Delivered materials may not represent installed progress. Whether they count as incurred cost depends on the contract, accounting framework and the policy applied. If the schedule includes them, disclose the treatment and assess whether it makes the reported progress understandable to a lender or surety.
Do these 3 things before closing this tab:
1Scan for outdated or missing drivers - takes under a minute2Repair Windows errors before they cause bigger problems3Fix the driver behind crashes, sound loss and screen glitchesDo not mix retainage with performance
Retainage is a collection term, not a measure of how much work has been earned. Track it in receivables and cash forecasting while leaving earned revenue tied to the progress method.
Cross-check the schedule
AICPA & CIMA recommends updating WIP schedules commonly on a monthly basis and cross-checking them with financial statements and job-cost records. A row that cannot be reconciled to the general ledger, contract file and field estimate should not be used as the final picture of the company.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Read trends, not isolated columns
Prepare a month-to-month comparison for each significant project and for the portfolio as a whole. Useful comparison axes include:
| Trend to compare | Question it answers | Warning sign |
|---|---|---|
| Estimated gross profit | Is the forecast margin stable? | Profit fades repeatedly without a documented cause or recovery plan. |
| Percent complete versus billing progress | Are invoices keeping pace with earned work? | Underbilling grows while work continues, or billings surge without corresponding progress. |
| Under/overbilling amount and cause | Is the difference contractual timing or a management problem? | The explanation changes each month or no owner is assigned. |
| Cash collected versus receivables and retainage | Are billings converting into usable cash? | Receivables rise while cash receipts lag. |
| Cash paid versus costs and payables | Can the contractor fund remaining work? | Overbilling is being used to cover unrelated shortages. |
| Estimate and change-order freshness | Are the inputs current? | Old forecasts remain unchanged despite field or contract events. |
A portfolio can show a normal total underbilling while one large job is deteriorating, or a favorable total overbilling while several projects are loss-making. Review project concentration, not just the aggregate.
Free tools Windows power users keep installed
One-click scans. No signup required.
What a bank or surety may see
Lenders and sureties use WIP information as evidence of estimating discipline, execution risk and the contractor’s ability to finance remaining work. They are likely to focus on unexplained margin changes, recurring underbillings, large unapproved changes, aging receivables, retainage, and whether reported overbillings are supported by cash.
Best Value
- Milwaukee Ink all Fine Point Marker, Black, 4 Per Pack
- 4 per pack Features Clog Resistant Marker Tip Writes through Dusty, Wet and Oily Surfaces Durable Marker Tip for Writing on Concrete, OSB and Rough Surfaces
- Clog resistant tip writes on dusty, wet and oily surfaces and is optimized for rough surfaces such as OSB, cinderblock and concrete
- Hard hat clip- attaches for easy access
- Quick dry time with reduced smearing and marking
Present the schedule with a short explanation for material variances: what changed, when it changed, the amount still exposed, and the action being taken. A transparent explanation of a legitimate timing difference is more useful than an unexplained favorable balance. Keep signed contracts, change-order logs, job-cost detail, collection reports and the latest cash forecast available to support the figures.
Federal contract rules are a separate boundary
Federal Acquisition Regulation (FAR) Part 32 applies only when the procurement and contract make those federal provisions applicable; it does not govern every private construction project. The FAR states that progress payments must be commensurate with the fair value of work accomplished. It also includes a loss-contract calculation when incurred cost plus estimated cost to complete is likely to exceed the contract price.
For a federal job, read the payment clause and agency instructions alongside the WIP schedule. For a private or non-U.S. job, apply the governing contract and relevant accounting framework instead of assuming FAR treatment.
When the schedule needs specialist review
Escalate an item to a qualified construction accountant when the contract contains unusual revenue terms, a significant claim or variable consideration, a disputed change order, a likely loss, or a progress measure that cannot be supported by costs or field evidence. The sources used for this guide do not establish one universal WIP format or a cross-jurisdiction rule for revenue recognition.
Keep a written record of the accounting judgment, the evidence supplied by operations and the date the estimate will be revisited. A WIP schedule is a management and reporting tool; it is not, by itself, a determination that a contractor’s accounting treatment complies with every applicable rule.
Monthly WIP review checklist
- Reporting date and job-cost cutoff are documented.
- Contract value agrees to the executed contract and approved changes.
- Pending, unpriced and disputed changes are listed outside the contract value until properly supported.
- Estimated total cost includes all known remaining labor, materials, subcontracts, equipment and expected exposure.
- Incurred costs reconcile to the ledger and are coded to the correct job and period.
- The progress method is identified and applied consistently.
- Earned revenue is recalculated and agrees to the schedule.
- Billings, receivables and retainage reconcile to the contract ledger.
- Cash receipts, cash payments, payables and remaining cash needs are reviewed.
- Material under/overbillings have a documented cause, owner and expected resolution.
- Current results are compared with prior WIP periods for profit fade and unusual movement.
- Project managers and contract administrators have reviewed significant exceptions.
Bottom line
Read a WIP schedule as a chain: contract value feeds the estimate, the estimate and incurred costs produce progress, progress produces earned revenue, and earned revenue is compared with billings and cash. If the estimate is current, costs are cut off correctly, changes are classified honestly and cash is reconciled separately from invoices, the schedule can show where profit, financing pressure and bonding risk are developing before the financial statements do.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
Quick wins for a faster PC:
Clear out junk files and repair common Windows errorsFree Scan →Scan for outdated or missing drivers - takes under a minuteDriver Scan →Repair Windows errors before they cause bigger problemsFix Now →
