# Costs in Excess of Billings

> Costs in Excess of Billings means the revenue earned and not billed in a contract, following GAAP and recorded in the latest balance sheet.

**Term:** Costs in Excess of Billings  
**Last updated:** 2026-07-29

## Definition

## What Costs in Excess of Billings Means in a Contract

Costs in Excess of Billings describes a situation, common in long-term or milestone-based agreements, where a party performing work has incurred costs and recognized revenue that outpaces the amount it has actually invoiced the counterparty. In practical terms, the contractor or service provider has done more work than it has been paid, or even billed, for at a given point in the contract's life. This concept becomes especially relevant in <a href=.

## Context

### Relevant circumstances

- Long-term supplier agreements
- Consulting appointments with staggered invoicing
- Construction projects where payment schedules differ from work completion

### Relevant sectors

- Construction Industry
- Consulting Services
- Manufacturing
- Wholesale and Retail Trade

## Relevant contract types

- [Construction Agreement](https://www.genieai.co/en-us/template-type/construction-agreement)
- [Manufacturing Agreement](https://www.genieai.co/en-us/template-type/manufacturing-agreement)
- [Cloud Services Agreement](https://www.genieai.co/en-us/template-type/cloud-services-agreement)

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