WIP Report Academy

Mastering Construction Finance

FINANCIAL TRAINING

Mastering the Work in Progress (WIP) Report

A WIP report is the ultimate dashboard of your project's financial health. It reconciles estimated costs against actual field spending to tell accounting exactly how much revenue you have earned and whether you are billing ahead or falling behind.

-27.85%
Gross Margin (Projected)
$351,442.41
Overbilled Position (Sage Job #53617)

1. Interactive WIP Table Explorer

Hover over headers or cell values to see equations, who owns the data, and why the metric determines your success.

Accounting Data PM Controlled Calculated Field
PM Customer / Project Sage Job# Contract Price
with Changes
Estimated
Costs
Total Billed
with Retention
Total Cost
to Date
Utilization % Costs to
Complete
Revised
Cost Estimate
GM % Start
Date
Completion
Date
Left
to Bill
Outstanding
CORs
Approved
CORs
CO R-Collins-Repair Mather 53617 $776,238.00 $604,627.34 $755,457.75 $516,544.63 85.43% $475,889.31 $992,433.94 -27.85% 11/06/24 06/15/25 $20,780.25 - $487,248.00
TOTAL - - $776,238.00 $604,627.34 $755,457.75 $516,544.63 - $475,889.31 $992,433.94 -27.85% - - $20,780.25 - $487,248.00
PM CONTROLLED

Costs to Complete (CTC)

DEFINITION

The Project Manager's field-validated estimate of the remaining direct costs needed to fully complete all scope items.

CALCULATION / SOURCE

Total Cost to Date + Costs to Complete

WHY IT MATTERS

An inaccurate CTC blinds executive leadership to massive project losses until it is too late.

STEP 1 OF 7

Meet the Project: R-Collins-Repair Mather

CF

Chief Financial Officer

Corporate Finance

Welcome to the WIP simulator! You are the PM on Sage Job #53617: a repair job for R-Collins with a contract price of $776,238.00. Originally, estimators forecasted this would cost $604,627.34 to complete. That means you started with a healthy 22.1% Gross Margin. Let's look at the WIP report at mid-project.

Active Project WIP Preview (Job #53617)

LIVE PREVIEW
Contract Price Est. Costs Total Billed Cost to Date Costs to Complete Revised Cost GM % Approved CORs
$776,238.00 $604,627.34 $755,457.75 $516,544.63 $88,082.71 $604,627.34 22.11% $487,248.00

Financial Impact Visualizer

WIP Project Sandbox

Change the values below to model your own construction projects, experiment with margins, and see the exact mathematical mechanics of over/under billings.

Contract & Invoicing

$
$

Cost Baseline & Actuals

$
$

The PM Forecast INPUT

$
💡 What is the remaining direct cost to finish all field activities?
Revised Cost Estimate $992,434 +$387,807 vs. original budget
Percent Complete (Earned) 52.05% Budget Utilization: 85.43%
Earned Revenue $404,015 Billed: $755,458

Real-time Project Health Indicators

Gross Margin Speedometer
-27.85% CRITICAL LOSS
Billing Balance Scale
EARNED BILLED
$351,442 OVERBILLED (Liability)
Warning: Severe Budget Overrun

Your revised costs ($992,434.00) exceed your original contract value ($776,238.00). You are working at a -27.85% loss. You are currently $351,442.00 Overbilled, meaning you have cash on hand but you lack the billing room left to cover the costs required to actually complete the scope. You must immediately pursue a scope Change Order (COR) or review your field productivity!

Are you ready to become a WIP Master?

Test your knowledge on real-world Project Management scenarios. Score 80% or higher (4/5 correct answers) to earn your **Official WIP Academy Certificate**!

WIP Wizard: Step 1 of 10

Who is the Project Manager?

Accounting needs to know who is responsible for this job. Enter your initials (e.g. CO).