WIP is considered to be any work or out–of–pocket expense recorded in the system (either as time or as an expense (AE) or disbursement) that has not yet been billed to the client. Client WIP can be divided into two different types: Unposted—When time, expense and disbursement sheets are entered, submitted or authorised (AE)/posted (AO), client WIP is saved in the system. This is unposted WIP and is displayed at the point of billing so that an accurate estimate can be made for interim bills. Unbilled—Posted time, expenses and disbursements are recorded in the WIP ledger and are available for billing. This is unbilled WIP.
A detailed breakdown of WIP is available at the point of billing. However, there are a number of ways WIP can be analysed before billing, if required. See Viewing/analysing client WIP for more information about how to view WIP. |