Work in Progress or “WIP” is a figure generally used to show progress and “Earned Revenue” on a project that is mid-stream. May notice this number in the profitability charts of your Contract Jobs:
Knowify uses this number to show you how far along you are on a project and how much of the contract value you’ve earned on a project before you’ve invoiced the client. In order to get a WIP value to show on your project, you will need two things:
- A Fixed Price Contract – This is necessary so we can show a % of a whole fixed number. (Cost Plus Contracts show “Unbilled instead)
- A Budget Cost – We use the budget to track how far along the actual cost is vs. how high you expect it to be.
Both of these values are used in the WIP calculation, which is as follows:
The Actual Cost divided by Budget Cost represents Percentage of Completion, so you can see how far along you are. Then we use that value times the Contract Value shows the percentage of the contract you should be invoicing based on how much of your budget has been spent. Then, revenue that has already been billed is subtracted, so it doesn’t double up your revenue.
A Negative WIP value shows that you have billed the client MORE than the % of Completion times the Contract Value.
If you do not wish to see this value, it can be deactivated in the Admin Section under Customize: