Work in Progress (WIP) Timesheets

Article Contents

1. Introduction
2. What is a WIP Timesheet?
3. Importance of Managing WIP
4. How WIP is Allocated to an Invoice

Introduction

Work in Progress (WIP) timesheets represent time or cost entries that have been recorded in Timesheets but have not yet been allocated to an invoice. Proper management of WIP is essential for ensuring accurate financial reporting, tracking project progress, and ensuring that billable hours are captured efficiently.

WIP is a normal part of using Hiro. It simply reflects recorded work that has not yet been linked to an invoice line. WIP remains visible until those timesheets are allocated during invoicing.

This article explains how to identify WIP timesheets, why managing WIP is crucial for overall project management, and how to allocate WIP to an invoice in Hiro.

What is a WIP Timesheet?

A WIP timesheet is any timesheet entry that has been logged in Timesheets but has not yet been allocated to an invoice. Timesheets in WIP are typically billable and need to be moved to an invoice to ensure they are accounted for in your project’s financials.

WIP only includes timesheets that contribute to invoiced work. Timesheets recorded under Work Schedule tasks set to No Charge are automatically excluded, ensuring that only billable work is considered in WIP calculations.

You can determine whether a timesheet is in WIP or has been allocated to an invoice through several areas in Hiro:

1. Projects Dashboard
   In the Projects Dashboard, the right-hand side column for each project shows the dollar amount of timesheets that are still WIP. This gives you a quick overview of unbilled hours.

2. Timesheets & Invoices Report (Excel)
   In this report, timesheets that have been allocated to an invoice are displayed with a grey background, while WIP entries have a white background. This provides a visual representation of what’s been invoiced and what’s pending.

3. Timesheets Export Report (Excel)
   In the Timesheets Export Report, there’s an "Allocated to Invoice" column. If the column is blank for a timesheet entry, it is still in WIP. Timesheets with invoice numbers in this column have already been allocated.

4. View Project Popup - Time & Costs Tab
   On the Time & Costs tab of the Project View popup, individual timesheets show their allocation status. If the "Invoiced On" field is blank, the timesheet is still WIP.

   

Importance of Managing WIP

WIP management is crucial for several reasons:

• Accurate Billing: If WIP timesheets aren’t properly managed and allocated to invoices, there’s a risk that billable hours will go unbilled, affecting cash flow.

• Project Profitability: Understanding how much time is WIP helps project managers see which hours still need to be accounted for in the project budget, preventing cost overruns.

• Clear Reporting: Properly allocating timesheets to invoices ensures clear and transparent financial reporting, making it easier to understand how much has been billed and what remains unbilled for each project.

How WIP is Allocated to an Invoice

WIP clears when timesheets are allocated to an invoice line during invoicing.

Allocation links recorded work to an invoice line and controls whether that time is billed now, deferred to a future invoice, or held without changing the fee amount. Allocating WIP does not force you to charge the full value of the timesheets. You still control what is actually charged using invoice amounts and, where applicable, To Invoice overrides.

For step-by-step instructions, including how Hiro selects timesheets by default and how to include or exclude specific dates, see:
Allocating WIP Timesheets to an Invoice

You can also review how invoice amounts work more generally here:
Charging Items on an Invoice