Work in Progress - General Contractor - Construction

Thanks for reaching out to the Community space, @GolfNut72.

Currently, we don't have a WIP feature in QuickBooks Desktop (QBDT). However, we can create an account called Work in Progress. This way, we can track the revenue (as liabilities) and costs (as assets) until the end of the job. Here's how:

Step 1: Create an account

1. Go to the Lists menu, and select Chart of Accounts.
2. Click the Account button, and then select New.
3. Select Other Current Asset for the account type.
4. Click Continue.
5. For the Account Name, you can put Work in Progress.

I'd also recommend reaching out to an accountant to help you choose the right account.

Step 2: Change the item account

1. Go to the Lists menu, and select Item List.
2. Change the expense account on your service items to the asset account you set up above.
3. Add Other Charge items.
4. Transfer out of WIP as the account and the amount in the description should be positive.
5. Make sure to use the Items tab instead of the Expenses on all your transactions.

However, if you use Job Profitability reports, we can filter them to include your WIP account. I'll guide you how:

1. Go to the Reports menu.
2. Select Custom Reports and then Summary.
3. Click the Customize Report tab, then select Filters.
4. Select the Account drop-down arrow, then choose Multiple accounts.
5. Verify all income and expense accounts and your WIP account, then click on OK twice.

Once done, generate a report to track the amount in WIP by the job.

1. Go to the Reports menu.
2. Select Custom Reports and then Summary.
3. Click the Customize Report tab, then select Display.
4. Select the Display columns by drop-down arrow, and then choose Account list.
5. Click the Display rows by drop-down arrow, and then choose Customer.
6. Select the Filters tab.
7. Click the Account drop-down arrow, and then choose your WIP account.
8. Click OK once done.

When the projects complete, 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.

I've also added these articles about customizing reports and job costing:

• Customize customer, job, and sales reports
• Tracking job costs

Feel free to drop a comment below if you have other questions. I'm always here to help you some more.