USA WIP (Work in Process/Progrees) Calculation

Sep 15, 2020
Reaction score
United States
I was hoping you could assist me with a work related issue that I am trying to resolve. We have a WIP schedule in our monthly financials for tracking our construction jobs in progress. The formula I am familiar with is

WIP = (Actual Cost/Budget Cost) * Contract Value – Billed Revenue

My predecessor used a different method of calculating WIP and I cannot find anything online, or otherwise, to back up her computation. She used:

Cost to date + Realized Profit to date – Billed Revenue to date

I took over the accounting manager position recently and I am trying to understand the prior method of calculating WIP. If both methods produced the same number we wouldn’t have an issue. But I cannot stand behind her formulas.

My predecessor purposely did not reveal her methodology on a number of subjects, to ensure she was not "replaceable". It has made my new job tedious and stressful. If I could solve this one final issue, I believe I will have everything under control. Our CPA is not helpful at all. That’s a whole other issue in itself.



VIP Member
May 12, 2011
Reaction score
United States
You know and can support your formula so just use it and don’t look back. I’ve experienced many times from a predecessor the “this is my unique and personal method - never change it”. And I’ve found that this is the modern equivalent of “if you change anything the gods will be angered!” Trust your knowledge and experience over unsupported fabrications.
Last edited:

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

Wip 0
Urgent: WIP? 3
USA Payroll Calculations 3
USA IRS not getting or processing faxes 0
UK WIP - Not again 1
UK Debtor days calculation 1
USA Depreciation of Process Water Cooling System 0
better off in work calculations 0