Month-end WIP prep checklist
The steps to a defensible work-in-progress schedule, job by job, every month.
os.construction
Free template
Free template
Company
Period ending
Prepared by
Reviewed by
1 · Cut off costs
| Done | Item | Owner | Date |
|---|---|---|---|
| AP invoices for the period entered and coded to job and cost code | |||
| Payroll through period end posted, including burden | |||
| Unbilled costs accrued (work performed, invoice not yet received)Ask each PM for received-not-invoiced items. | |||
| Equipment and internal charges posted to jobs | |||
| Committed costs current: subcontract and PO change orders entered |
2 · Update the forecast
| Done | Item | Owner | Date |
|---|---|---|---|
| PM updates cost-to-complete for every cost codeBottom-up: remaining work, not budget minus cost to date. | |||
| Estimated total cost (EAC) = cost to date + cost to complete | |||
| Contract value updated for approved change ordersUnapproved COs: follow your revenue policy and your CPA; do not count them by default. | |||
| Projected gross profit and margin recalculated | |||
| Loss jobs flagged: full anticipated loss recognized now |
3 · Compute WIP
% complete (cost-to-cost) = cost to date ÷ estimated total cost
Earned revenue = % complete × current contract value
Over / (under) billing = billed to date − earned revenue
Positive = over billed (liability) · Negative = under billed (asset)
Earned revenue = % complete × current contract value
Over / (under) billing = billed to date − earned revenue
Positive = over billed (liability) · Negative = under billed (asset)
| Done | Item | Owner | Date |
|---|---|---|---|
| Billed to date tied to AR / pay apps for every job | |||
| Over / under billing calculated per job | |||
| Fade check: margin vs last month and vs original estimateExplain every move over your threshold. | |||
| Retainage receivable and payable reconciled |
4 · Review and post
| Done | Item | Owner | Date |
|---|---|---|---|
| WIP review meeting held with PMs, ops lead and CFO | |||
| Changes from the review captured in the forecast | |||
| Over / under billing journal entry posted | |||
| WIP schedule tied to the general ledger (revenue, cost, over/under) | |||
| Backlog updated: contract value remaining to be earned | |||
| WIP package saved for lender, surety and bonding agent as required |
Illustrative example: contract $10,000,000; cost to date $4,200,000; estimated total cost $8,750,000 → 48.0% complete → earned revenue $4,800,000. Billed to date $5,100,000 → over billed $300,000.
Template from os.construction/resources/templates. Free to use and adapt.Requirements vary by contract and state. Your contract documents govern.