QuickBooks helps in creating invoices, making payments, keeping track of employees, etc. So, while making a financial report it is possible that the company records the revenue when it is finished but some companies record revenue on the basis of percentage. WIP Report QuickBooks gives you an overview of the real cost, percentage of completion, earnings, and revenue. Since you don’t have to manually compute the revenue, it helps you save time. You will discover everything you need to know about creating a QuickBooks WIP report in this post. You just need to stick for knowing it all.
WIP Report QuickBooks Overview
The WIP report in QuickBooks is useful for displaying a project’s ongoing financial situation. Viewing comprehensive records of transactions under customers or jobs is another benefit. The ‘contract amount, anticipated costs, actual costs, the percentage of completion, billed revenue, earned revenue, and over/under billings’ are typically included in work-in-progress reports.
Importance of WIP Report QuickBooks
- It helps in saving time as you only need to transfer data to Excel and it will generate WIP reports and maintain a balance sheet in QuickBooks.
- You can maximize ‘Cash Flow’ and can increase your profit.
- WIP reports are also important for construction contractors. You can estimate and control cash flow effectively.
- It includes the customer name, job type, start date, and estimated completion date, and you can sort the report according to your need.
How to Create WIP Report QuickBooks?
Go through the instructions to create a WIP report in QuickBooks and make your work easy:
- Firstly, make a new account and give it the name Work In Progress.
- The item account should be changed from expense report to services. Add more charge items by selecting the ‘item list’ from the List option.
- The amount in WIP by job can now be tracked in a report. Click on ‘Custom Reports’ and tap on ‘Summary’ under the ‘Reports’ option.
- Choose Display under ‘Customize Report’.
- Now, hit on the ‘Account list’ under the ‘Display’ columns.
- Select ‘Customer’ under the Display rows.
- Click on the ‘Filters’ tab.
- Go to the Account and select the ‘WIP account’ you want.
Steps to Run WIP Report QuickBooks
Follow the steps to run the WIP report in QuickBooks Online:
- Tap on Reports and write Transaction in the browse box.
- Choose Transaction List under Customer report.
- Hit on ‘Customize’ and put a date under the ‘Report Period’ field.
- Move to the Customer option, and select All, Specified, or Not Specified from the Filter section.
- Lastly, Press the ‘Run’ report.
How to Get a WIP Report in QuickBooks?
In order to get a WIP to report in QuickBooks. Just look at the procedure mentioned below:
- Look for the Reports option.
- Choose ‘Custom Reports’, and tap on ‘Summary’.
- Choose Display within the ‘Customize Report’ tab.
Though, you will not see the WIP feature on QBs desktop. But here are the steps that you can follow to make an account:
- Tap on Lists and choose Chart of Account.
- From the Account option, choose New.
- Click on Other Current Asset and press Continue.
- You can enter ‘Work in Progress’ for the Account Name.
WIP Report is a quite useful function that QuickBooks provides. You can reduce the time and effort you spend manually preparing reports by using this function. The above-simplified tutorial should have made it easier for you to generate and run a WIP report in QuickBooks. You can reach us at any moment with any questions. We will be happy to assist you.
Frequently Asked Questions (FAQs)
Q.1. What is included in a WIP report?
- Contract Amount.
- Estimated costs.
- Costs to date.
- Billed revenue.
- Earned revenue.
- Over/under billings.
Q.2. What is a WIP summary?
A project’s associated data, including ‘expected & real costs, the percentage of completion, estimated, earned, and actual revenue’, is summarized in the WIP Report Summary.