Closing out WIP in WIP Account

@qbteachmt  are you available to weigh in?

Let me join this thread and explain why there's no deduction in your Work-In-Progress (WIP) account.

To start, the Bill you've generated will impact the Accounts Payable, not your WIP account directly. The bill will depend on the Category or Account associated with the items you've selected.

If you want to transfer or reduce the WIP account, consider using a Journal Entry (JE). When using JE, I suggest seeking assistance from an accountant to set this up properly. 

The Community is always open if you have further concerns about closing out your WIP account. Keep safe.

The WIP close-out process depends on whether you're using completed contract or percentage of completion method.

For completed contract (most common with smaller subs): when the job is done, you journal the accumulated costs from your WIP/CIP asset account to COGS, and recognize the full revenue. The JE is:
- DR: Construction Costs / COGS (expense)
- CR: Construction WIP (asset)
- DR: Billings on Contracts (liability, if you tracked progress billings separately)
- CR: Construction Revenue (income)

For percentage of completion: you should be recognizing partial revenue each period based on % complete, so at close-out you're just recognizing the remaining revenue and clearing the WIP balance.

The tricky part is making sure your WIP balance actually matches reality before you close. If costs were miscoded or change orders weren't reflected, your close-out will create a surprise profit or loss. Run a P&L by Customer for the job and reconcile against the WIP asset before posting the close-out JE.

For what it's worth, if you're managing multiple jobs and need to track WIP status across all of them (not just close-out), I built a tool that automates the WIP schedule for QBO users: WIP Reports app . It shows you where each job stands so you can catch problems before close-out.