Understanding WIP Accounting for Construction 理解在建工程的会计核算
In most cases, it is simple to determine the timing for Revenues Earned, once ownership of a product is transferred or a service is complete, revenue is considered to have been earned. But if revenue recognition is delayed until the end of a long term contract, the Matching Principle of tying revenues and their direct costs can be challenging. The solution to this problem is the Percentage or Completion Method of Revenue Recognition. 在大多数情况下，很容易确定收入的时间，一旦产品所有权转移或服务完成，收入就被认为是收入。但是，如果收入确认被推迟到长期合同结束时，收入与直接成本的匹配原则可能会面临挑战。解决这个问题的方法是收入确认的百分比或完成方法。
Contract Revenues are tied to Costs, but Billings on Contracts are not always tied to Costs. Sometimes elements of a contract are billed in advance or sometimes they are delayed by mutual agreement (or disagreement). This mismatch between actual billed revenue and earned revenue will require an adjusting entry but since the Percentage or Completion Method adjusts billed revenue to reflect earned revenue, billings are posted to revenues and adjusted later to reflect the correct earned revenue amount. (Debit Accounts Receivable, Credit Revenue). 合同收入与成本挂钩，但合同账单并不总是与成本挂钩。有时合同的内容是预先计费的，有时是由于双方同意(或不同意)而延迟的。实际的账单收入和挣得的收入之间的不匹配将需要一个调整分录，但是由于百分比或完成方法调整账单收入以反映挣得的收入，所以账单将被过账到收入中，稍后进行调整以反映正确的挣得的收入数额。(借：应收账款，贷：收入)
Long-Term Contracts will have estimates for both sides of a contract, Costs and Revenues. Calculating Percentage of Completion requires both total actual and total estimated numbers to calculate a percentage so it uses the side where both the actual and estimated numbers can be known, Costs. 长期合同将对合同双方的成本和收入进行估算。计算完工百分比既需要计算实际总数，也需要计算估计总数，所以它使用了可以知道实际数和估计数的那一面，即成本。
Percentage of Completion = Actual Costs to Date / Total Estimated Costs 完工百分比=到目前为止的实际成本/估计成本总额
The Percentage of Completion is then applied to the Total Estimated Revenue to determine Earned Revenue to Date. 完成的百分比然后应用于总估计收入，以确定到目前为止的收入。
Earned Revenue to Date = Percentage of Completion * Total Estimated Revenue 到目前为止的收入=完成的百分比*总估计收入
Finally, the Earned Revenue to Date is compared to the Billings on Contract to Date. The difference is either added to or subtracted from the Revenue. 最后，将到目前为止的收入与到目前为止的合同账单进行比较。差额将从收入中增加或减少。
Total Billings on Contract – Earned Revenue to Date = Over/Under Billed Revenue 到目前为止，合同收入的账单总额=超过/低于账单收入
**The Over/Under Billed Revenue accounts are Balance Sheet Accounts and they are often called either Billings in Excess of Costs (liability account that reflects over-billings) or Costs in Excess of Billings (asset account that reflects under-billings). **超收或欠收的收入账户是资产负债表账户，它们通常被称为超过成本的账单(反映超过账单的负债账户)或超过账单的成本(反映低于账单的资产账户)。
Work In Progress Statement: 工作进度报告:
A Work in Progress Statement is used to compile the information necessary for the percentage of completion calculations but also to provide crucial information about the total value and progress of work completed. 进度工作报表用于汇编完成计算百分比所需的信息，也用于提供关于已完成工作的总价值和进度的重要信息。
