Free WIP Schedule Template, in Excel.

The template is a plain Excel workbook with two tabs. The WIP Schedule tab holds 15 columns, room for 10 jobs and a totals row. One sample row (job 101, "Sample Office Buildout") is filled in so you can see the format, and you can type over it. The How to Use tab gives the six-step routine in short form. White columns are where you type. Shaded columns calculate, so don't overwrite them.

What does each column in the WIP schedule mean?

Here's every column in the file, in order, and whether you type it or the spreadsheet figures it out.

One thing to watch: estimated total cost (column F) and the two cost columns that drive percent complete (I and J) are separate inputs. They should agree. If costs to date plus cost to complete doesn't equal your estimated total cost, one of the three numbers is out of date, and the gross profit and the percent complete will tell two different stories.

What does a WIP schedule example look like with real numbers?

Here's the sample row that ships in the file, worked line by line. It's a $1,000,000 office buildout with $25,000 of approved change orders, $340,000 spent so far and $510,000 left to spend.

The owner has been billed $425,000, but only $410,000 has been earned, so the job is over billed by $15,000. That $15,000 is a liability: you've been paid for work you haven't done yet. Now flip it. If the same job had only billed $380,000, it would be under billed by $30,000 ($380,000 minus $410,000), which is money you've earned and haven't asked for. The retainage column ($42,500 here) doesn't change the math. It tells you how much of what you've billed is sitting with the owner until closeout.

You can check any single job the same way in the free WIP over/under billing calculator. The spreadsheet does it for every job at once and adds up the totals.

How does a surety read your WIP schedule?

An underwriter isn't reading the WIP schedule to check your arithmetic. They're reading it for patterns, and they usually compare it with the last one you sent. These are the questions it answers for them:

• Does it tie? The total over and under billings should match the contract asset and liability lines on your balance sheet. A schedule that doesn't tie makes every other number on it harder to trust.
• Is gross profit holding? When a job's GP percent slides from one schedule to the next, that's called fade. A little is normal. Fade on several jobs at once suggests the estimates were too optimistic.
• How much is under billed? Large under billings are an asset you may never collect if the cost overrun isn't recoverable. Underwriters tend to look at them hard.
• Is over billing funding the company? Being somewhat over billed is common and healthy. Heavy over billing across the whole backlog can mean today's jobs are paying for yesterday's.
• How much work is left? Total contract minus earned revenue is your remaining backlog, which they weigh against your working capital.

If you're getting ready for a bond increase, our guide to WIP schedules goes deeper on what underwriters look for, and the bonding capacity calculator shows how working capital drives the number.

How do you fill in the WIP template each month?

1. Close the month first. Post every job cost invoice, payroll and accrual for the month in your accounting system so costs to date are complete.
2. Enter each active job. Put one active job on each row: job number, name, contract value and approved change orders only.
3. Update the estimates. Have the project manager give you a fresh estimated cost to complete for every job, then enter the estimated total cost.
4. Enter costs and billings. Enter costs to date from the job cost report and billed to date from your billing records, plus retainage held.
5. Read the over and under billing column. Look for jobs that are heavily under billed (cash you've earned but haven't invoiced) and jobs whose gross profit percent dropped since last month.
6. Tie the totals to the general ledger. Compare the totals row to your balance sheet and income statement. If they don't agree, find the difference before anyone outside the company sees the schedule.

Run it on the same day each month. A WIP schedule that's three months stale tells a lender you aren't watching your jobs.

What doesn't this template do?

It's a clean starting point, not a full reporting system. It doesn't compare this month with last month, so if you want to see fade you'll need to save each month as its own copy. It doesn't separate committed costs (signed subcontracts and purchase orders that haven't been invoiced), uninstalled materials or pending change orders. It doesn't flag a loss job for you: if a job's estimated total cost is higher than its total contract, the GP column goes negative, and that job needs a conversation with your CPA right away. And it doesn't produce the completed contracts schedule most sureties also ask for.

For the accounting behind the percent complete column, read the percentage of completion method. For how the WIP fits with job costing, retainage and monthly close, start with Construction Accounting 101. If cash is the worry, pair this file with the 13-week cash flow forecast template.

A template gets you organized. A WIP schedule that ties to the general ledger every month is part of our monthly construction accounting for construction companies.