Construction Contract Accounting: WIP Schedules, Over/Under Billing & Margin Fade
Estimated gross profit, cost-to-cost progress, earned revenue, over- and underbillings, an eight-job WIP schedule with the year-end entry, change orders and margin fade, loss contracts, retainage and backlog: 8 labs on one contractor.
The first lesson is free — no account needed.
About this course
A construction accounting course that builds the work-in-progress schedule of one fictional contractor with eight jobs in a spreadsheet, for construction accountants, controllers, accounting students and project managers. You turn bids into estimated total cost, estimated gross profit and margin, measure progress with the cost-to-cost method, calculate the revenue earned to date and for the year, follow one school job through four quarters as it swings between underbilled and overbilled, complete the year-end WIP schedule and book the adjustment, add change orders and measure margin fade in points and dollars, recognise the whole loss on a contract that has turned negative and calculate retainage, backlog and a bid-versus-current margin chart. The method follows revenue recognised over time as under ASC 606 and IFRS 15. Illustrative figures, educational only, not accounting advice. The first lab is free.
Lessons
- Contract Value, Estimated Total Cost and Estimated Gross ProfitFree
- Percent Complete with the Cost-to-Cost Method Pro
- Earned Revenue to Date and Revenue for the Year Pro
- Billings vs Earned Revenue: Overbillings and Underbillings Pro
- The WIP Schedule for Eight Jobs and the Year-End Adjustment Pro
- Change Orders, Revised Estimates and Margin Fade Pro
- Loss Contracts: Recognise the Whole Loss Now Pro
- Retainage, Backlog and a Margin-Fade Chart Pro