WIP QuickBooks

How to Setup Work in Progress (WIP) in QuickBooks

QuickBooks is a top demanding accounting software that simplifies all the accounting and financial services of any organizations. The advanced tools integrated in the software helps the users to overcome the problems that are technical or functional at times. The errors are at time becomes critical in QuickBooks Job Costing and need to be fixed by QuickBooks customer care support. WIP (Work In Progress) in QuickBooks refers to the builders and contractors that bring land and develop to adhere with the accounting needs for revenue. Mostly the engineering firms, attorneys and same type of companies prefer to use work in progress (WIP) accounts.

How to handle Work In Progress (WIP)?

What Is Wip Quickbooks ?

The WIP procedure for managing work in progress (WIP) or construction in progress (CIP) in QuickBooks. It considers all the revenue and costs will be tracked as assets (for costs) and liabilities (for revenues) till the works over.

• Create a new account called Work in Progress or Construction in Progress
• Then Go to Lists -> Chart of Accounts
• Click the Account button -> select New
• Select Other Current Asset for the account type
• Go to Lists -> Item List and change the expense account on your service items to the asset account you set up above
• If you can’t locate the account -> click the button next to this item is used in assemblies.
• Add two Other Charge items:
  • Transfer out of WIP – with WIP as the account and note in the description that the amount should be positive
  • Transfer into COS – with COS as the account and note in the description that the amount should be negative
• Ensure the items tab usage instead of the Expenses tab on all your transactions
• In case you implement Job Profitability reports you can modify or filter them to comprise your WIP account.
  • Click on Modify Report
  • Choose the Filters tab
  • Select Account -> Multiple Accounts
  • Verify all income and expense accounts and your WIP account
  • Remember the report.
• Generate a report to track the amount in WIP by job:
  • Go to Reports -> Custom Summary Report
  • Click on Modify Report
  • Choose Display Columns = Account List and Display Rows = Customer
  • Click on the Filters tab
  • Choose  Account = your WIP account.
  • Remember the report.
• When the projects completes make the invoice or sales receipt for the sales price then add the two charged items to ensure a negative amount for Transfer into COS. The invoice end total must match the sales price.

How to Generate Job WIP Summary Reports in QuickBooks?

Follow the steps suggested below for generating a job WIP summary in your QuickBooks application:

• Sign in to QuickBooks program
• Start with the Help function in your program
• Locate on Work With Items.
• The usable items you are linked to an Other Asset account, instead of income and/or expense

In case customized homes are constructed for sale purpose in the future purpose, the items will be:

• Service Items for subcontractor labor
• Non-inventory Items for job materials
• The other chargeable items for permissions of constructing building, freight and delivery, construction loan interest, etc.
• Every individual item associates with different asset account named for CIP (construction in progress).
• The regular job reports display that every thing is right nut you need to verify the Filters tab to see if it is filtered on “income/Expense”. If it is filtered remove that filter so that it comprise the Balance Sheet accounts as well.
• Once done close the WIP to COGS when that project sells.

Get Help for WIP Reports In QuickBooks Pro, Premier & Enterprise

For further information you can contact QuickBooks Support Phone Number. The support team is always approachable through phone support, email support and online chat option. Also you can contact MyOnePro, that is a reliable third party QB consulting agency. It employs top QuickBooks professionals who are capable of handling the queries and issues in a very short time. Call to the toll free phone number +1-516-494-3146 and garner immediate support solutions.