Finance & Contracts

WIP (Work In Progress)

Accounting method that recognizes revenue and cost on long-term projects as work is completed, not when invoiced.

For tax and financial reporting on long-term contracts (typically over 1 year, or any contract spanning a year-end), contractors use percent-complete accounting to recognize revenue and cost as work progresses, not when invoices are sent. A WIP schedule shows, per job: contract amount, costs to date, estimated costs to complete, percent complete, revenue earned, billings to date, and over/under billings. WIP accounting is mandatory for large contractors and is the core selling point of Sage Construction and Acumatica Construction Edition.