You have a high overbilling on a project but it doesn't make sense.
First, remember this!
Actual Gross Profit* % > Estimated Gross Profit %, you're overbilled
*Actual Gross Profit: (Billings to date - Cost to date) / Billings to date
I recommend the following options:
1) Revisit your estimate: Look over your latest job cost estimates to see if anything has changed for that project. You may need to decrease total estimated cost because your current WIP report is suggesting that you're recognizing too much gross profit. Decreasing your total estimated cost would increase your estimated gross profit percentage which would in turn would decrease the overbilling.
2) Scan subsequent month/period cost detail: Scan the cost detail from the subsequent period for the project in question. There may be a large invoice(s) recorded in the subsequent month/period that should move back to the period covered in the WIP report. Increasing cost to date on your WIP would decrease the gross profit percentage from billings and cost to date to an amount closer to your estimated gross profit percentage, which would lower the overbilling.
There are many other things to look at, however, I would start with the options above.
Thanks!
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