The WIP is a report run at the company level that synthesizes key financial information for all active projects. By estimating the latest revenue and gross profits, the WIP allows contractors to determine and compare true earning to customer billings. The WIP also gives insight into cash flow, working capital, and project profitability.
1. How to Access the WIP Report
The WIP is a report run at the company level that synthesizes key financial information for all active projects. By estimating the latest revenue and gross profits, the WIP allows contractors to determine and compare true earning to customer billings. The WIP also gives insight into cash flow, working capital, and project profitability. See the steps below to view the WIP Report for your projects.
Steps:
1. The WIP is accessed from the Project Overview screen
2. From there, click on the WIP tab.
3. You will now be able to view your latest WIP report.
4. Keep in mind this is permission-dependent, so check with your system admin if you encounter any trouble accessing this area.
2. How to Interpret WIP Data
The WIP is broken into many distinct columns, and upon clicking into the WIP tab, it will display as a report that can be viewed immediately. Also note that all projects that have a billing within the current calendar year, even if closed, will appear on the WIP.
o Tools Icon (Rubix Cube):
This is used to access the revenue recognition method and can be used to change the method if needed.
Can also be used to run a variety of project-level reports such as actual costs, performance overview, and scope of work
o Document Icon:
This will take you to a financial overview of the selected project
o Project Number:
Clicking this will take you to the project
o Project Name:
Clicking this will take you to the project
You will be able to view the current method of revenue recognition in grey text underneath the project name
o Contract Amount:
This is the revised contract amount to include any authorized changes
o Revenue to date:
This will display the amount of currently recognized revenue. Keep in mind RedTeam can utilize either percentage of completion or revenue equals billing. Ensure the correct recognition method is selected to get an accurate revenue amount
You can click on the number to see a formula for how RedTeam Flex is generating this revenue amount. Percentage of completion is the more commonly used method of revenue recognition and involves more calculations than revenue equals billing. You can set a default revenue recognition method from within your configuration menu, in the "my company' section
Note: Once a project is closed, the revenue recognition will automatically be switched to revenue equals billing.
o Billing:
This is your to-date billed amount
o Underbilled:
If you have billed less than the current revenue amount, this column will display the amount by which you are underbilled. Recall that under/ over billing is determined by total revenue less total billed.
o Overbilled:
If you have billed more than the current revenue amount, this column will display the amount by which you are overbilled. Recall that under/ over billing is determined by total revenue less total billed.
o Backlog:
This is contract value minus revenue to date. The larger the amount, the more value is still waiting to be recognized as revenue.
o Status:
Will display the project status. The vast majority of projects here will be listed as "In Progress," but keep in mind that if you close a project, but continue to put revenue towards it, you may see a closed project appear on this report
3. Other Uses of the WIP Tab
Beyond viewing the WIP itself within RedTeam, the WIP tab has some additional functionality that can be useful for project accounting.
Steps:
View Icon. This can be used to view several other reports: EAC, Project Accounting, Revenue/Gross.
Filter Icon. This will allow you to filter through the WIP to better categorize data.
More Icon (3 dots Other). Allows you to export the WIP.
Required Permissions to view WIP reports
Wip report offer multiple financial reports that you can pull from your company. In order to access them please make sure you user role has the following permissions.
Projects FInanlcial Overview Report
Permission: ViewProjectsFinOv
Project Accounting Report
Permission: ViewProjectAccounting
Revenue & Gross Profit Report
Permission: ViewRevenueAndGrossProfit
Estimates at Complete Report
Permission: ViewEstimatesAtComplete