> ## Documentation Index
> Fetch the complete documentation index at: https://docs.denari.com/llms.txt
> Use this file to discover all available pages before exploring further.

# WIP, budgets & pre-billing

> Work you have done but not billed yet, the ceiling on what you can bill, and billing ahead.

**WIP (work in progress) is work you've done but not billed yet.** Someone logs six hours; that is WIP. You bill it; the WIP goes away.

## WIP can go below zero

WIP is one number:

* **Positive WIP:** work done, not billed yet.
* **Negative WIP:** you billed ahead of the work. This is normal with fixed fees, retainers, and pre-bills. Many firms want to sit here.

## When WIP comes off

Each engagement uses the firm default or picks one:

* **On invoice:** when the invoice is issued.
* **On cash settlement:** when the client's money actually settles.

The setting in force is locked onto each invoice when it's issued. Changing the setting later doesn't change old invoices.

## Budgets

A budget is the money ceiling for a project.

| Type | Meaning |
| - | - |
| **Fixed fee** | An agreed price, whatever the hours. |
| **Capped T\&M** | Bill hours, but never past the cap. |
| **T\&M** | Bill hours, no cap. |
| **Retainer** | Money paid ahead and drawn down. |

Budgets are a hard limit. If a line would go past the budget, Flows trims it or holds it back and tells you on the [Billing review tab](/flows/drafts-and-review#the-billing-review-tab).

<Note>
  **Budgeted hours are different.** They're an estimate for planning and never
  stop billing.
</Note>

## Pre-billing

Pre-billing is billing before the work is done. Each project can allow it up to a **Pre-bill cap**, a percentage of the budget. For example, 100% for a fixed-fee tax return but only 50% for open-ended advisory.

## Where to see it

The billing group's **Services** tab has a **WIP, budgets & adjustments** section. It shows each project's budget, what's been used, and the WIP posted, plus write-ups and write-downs.

## Two different questions

| Question | Where it's answered |
| - | - |
| **Are we billing ahead of the work?** | The coverage numbers on the Billing review tab. Being ahead is usually good. |
| **Are we billing more than we agreed?** | The budget check. It's a hard stop. |


This documentation is built and hosted on [Mintlify](https://mintlify.com), a developer documentation platform.