Real Estate

Contractor Progress Billing (CIP)

Recording a milestone payment to the main contractor as construction progresses.

Account NameTypeDebit ($)Credit ($)
Construction in Progress (CIP)Asset (+)500,000.00-
Accounts Payable (Contractor)Liability (+)-500,000.00

💡 Accountant's Note

All construction costs accumulate in the CIP account while the building is being built. CIP is a special fixed asset account — it is not depreciated until construction is complete and the building is placed into service.

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