How to Post a WIP Journal Entry for Production Builders in QuickBooks Online

Описание: How to Post a WIP Journal Entry for Production Builders in QuickBooks Online | QuickBooks Tutorial

🚀 Are you a production builder or spec home builder who only recognizes revenue when a home is sold? In this advanced QuickBooks tutorial, I’ll show you how to post a Work in Progress (WIP) journal entry to ensure that revenue and costs are correctly tracked on your balance sheet until a project is completed.

🔹 Why This Matters:
✔️ Ensures accurate revenue recognition for spec home builders
✔️ Keeps financial statements compliant with percentage-of-completion accounting
✔️ Helps track construction costs in the WIP asset account
✔️ Prevents premature profit recognition before a home is sold

🔹 What You’ll Learn in This Video:
✅ The difference between WIP accounting and percentage-of-completion
✅ How to run the Profit & Loss by Customer report to track job progress
✅ Why revenue and costs should only be recognized after closing
✅ How to export financial data and build a WIP journal entry in Excel
✅ How to post sales, discounts, and direct construction costs in QuickBooks
✅ How to move costs from P&L to the WIP asset account
✅ How to reverse the WIP journal entry for accurate financial reporting

📌 Timestamps:
00:00 – Introduction
00:20 – Why Spec Builders Need WIP Accounting
00:48 – Running the Profit & Loss by Customer Report
01:30 – Identifying Completed vs. In-Progress Jobs
02:33 – Exporting Financial Data to Build the WIP Journal Entry
03:47 – Backing Out Sales & Costs for Incomplete Jobs
05:26 – Creating WIP Asset Accounts in the Chart of Accounts
06:32 – Posting the WIP Journal Entry in QuickBooks
07:30 – How WIP Entries Affect the Balance Sheet
09:12 – Copying the WIP Calculation Link for Documentation
12:36 – Why You MUST Reverse the WIP Entry Each Month
13:52 – Finalizing Reports & Preparing for the Next WIP Entry

⚠️ Important Note: If you start posting WIP journal entries, you must do it every month for accurate financials. Consider working with a qualified accountant to ensure consistency!

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💬 Got questions? Drop them in the comments, and I’ll be happy to help.

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