Knowing where you stand financially on every project is critical to your business. Specifically, your cash flow and margins. Without hesitation, most builders will say that a well-crafted Work in Progress report is the key to having a clear understanding of the financial health of your projects.

When thinking about WIP reporting the general assumption is that it lives within a complex web of spreadsheets. Although this trusted method gets the job done, it does not provide real-time results and requires a significant amount of data entry and maintenance, which is very time-consuming.

Buildertrend can help! The new WIP report within Buildertrend offers a near real-time report that provides builders the business intelligence they need to be successful.

When we say business intelligence, we’re referring to the exact information you’ll receive in order to make data-driven decisions and adjustments to ensure each project is profitable.

What WIP report should I use?

The answer to this question depends on how your company manages its accounting practices. Both reports can be beneficial at any time during your ongoing jobs, and we’ll walk you through the basics of how these reports differ.

WIP Cash Report

Revenue is recorded when your client pays you, and expenses are recorded when payments are made.

In Buildertrend terms, this report updates once payments have been made or received.

WIP Accrual Report

Revenue is recorded when it is earned or when an invoice has been released, and expenses are recorded when a bill is received (not when it has been paid).

In Buildertrend terms, this report updates once Bill and PO payments are in a ready for payment status or already paid, and also when invoices have been released.

The WIP report will help you answer the following questions:

· Which of my jobs are under invoiced?

· What is my percent to completion?

· How much money am I going to make on this job?

· Do I need to invoice my customer or request a draw?

· How are each of my jobs performing by project manager?

· How much money do I have left to spend on a job?

To begin gaining the full value of the WIP Cash report, it's important to understand what features and data points are required.

You'll need to be using the functionality within these features to accurately calculate the WIP report:

Estimates

Your estimates will provide your expected costs for the WIP report. To get the value from the estimate into the report it will need to be approved. Using and updating the New Expected Budget will automatically update the expected cost within the WIP report.

Bills & Purchase Orders

Your Bills and POs will provide the WIP report with the ongoing total of all paid job costs. You can use either a bill, PO, or both, however, timely payments will need to be applied to ensure the WIP report is accurate.

Change Orders

If you manage Change Orders within Buildertrend, they will need to be approved to allow the added costs to flow into your job running total. You'll also need to convert your change orders into owner invoices to allow for the correct calculation of your over/under customer billings.

Selections & Allowances

Buildertrend provides the option to add allowance amounts to your customer selections. If your customer exceeds the allotted allowance amount upon approval, it will feed that overage into your job running total. The same goes for any remaining allowances that come in under the allowed amount after a choice is made by your customer. Using this functionality is not required.

Owner Invoices

Using Owner Invoices is critical to the accuracy of your WIP report. Invoices must be released to your customers and then marked as paid or partially paid. This will unlock the visibility to your over/under invoice and outstanding invoice reporting within the WIP report.

Contract Price

You'll need to enter a contract price within your Job Details page to get accurate calculations. By having your contract price entered it will provide the WIP report with the correct job running total.


How are the WIP-Cash Report calculations made?

You may be curious how the data points within the WIP report are calculated. This breakdown will help you understand where the data originates within Buildertrend’s features and how the numbers are calculated. Your WIP report does take into account Time Clock labor costs if both Time Clock options are checked in your Budget Settings, as well as costs originating from QuickBooks if integrated. These costs will be included in (Paid Costs to Date).

Percent Complete = Sum of all Paid Bills and POs (Paid Costs to Date) ➗ Expected Costs from the Estimate or the New Expected Estimate

Job Running Total = Contract Price ➕ Approved Change Orders ➕ Selection Overages or Underages

Amount Earned = Job Running Total ✖️ Percent Complete

Over Invoiced / Under Invoiced = Sum of all Released & Fully Paid Owner Invoices (either to the owner or to QB/Xero) ➖ Amount Earned

Cost to Complete = Expected Costs from the Estimate Tab or the New Expected Tab ➖ Sum of all Paid Bills/POs (Paid Costs to Date)

Expected Gross Profit = Job Running Total ➖ Expected Costs from the Estimate Tab or the New Expected Tab

Profit Earned = Expected Gross Profit ✖️ Percent Complete

Running Profit Margin = Profit Earned ➗ Job Running Total

Outstanding Invoice Amount = Sum of all Released Owner Invoices (either to the owner or to QB/Xero) ➖ Sum of all Owner Invoice Payments

Overall Markup = Estimate Gross Profit ➗ Expected Costs from the Estimate Tab or the New Expected Tab


Permissions:

If you'd like to grant access to an internal user, or you are not able to see the Reporting tool within your account, please request the View Reports permission from your administrator.

Exporting:

You have the option to export your WIP report to Excel. This will be the only option for editing values within the report.

Filtering:

You have the option to filter by:

· Date

· Job Status

· Job Group

· Project Manager

· Job Name

You can save a frequently used filter(s) to allow for quick adjustments to your WIP report view.

For comprehensive online learning, please visit the Buildertrend Learning Academy.

If you have any questions or require additional support, feel free to chat with us, send an email: support@buildertrend.com, or give us a call at 1-888-415-7149. We’re always happy to help.

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