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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! 💡 Want More QuickBooks & Construction Accounting Tips? Make sure to subscribe and turn on notifications 🔔 for more QuickBooks tutorials and financial strategies for home builders and contractors! 👍 Like this video? Give it a thumbs up! 💬 Got questions? Drop them in the comments, and I’ll be happy to help. #QuickBooksOnline #WorkInProgress #ConstructionAccounting #SpecHomeBuilders #HomeBuilders #QuickBooksTutorial #WIPAccounting #ConstructionFinance