On each project, this is the sum of the current liabilities from each consultant. Further, this is calculated on a phase-by-phase basis.
Percent of Gross Fees Billed x Consultant Fees + Billed Pass-Thrus = PWP Liability
For each of your consultants, their phase-by-phase accrued liability is calculated. Then we subtract payouts you have made to them. This gives us the current PWP Liability.
Example
Phase A Fee = $5000, and you have invoiced your client $2000.
Consultant fee for Phase A = $1000
PWP Liability = (2000 ÷ 5000) * 1000 = 400
So, when you receive your $2000 from your client, $400 of that amount is earmarked for your consultant and should be paid out. If you also billed and collected on any pass-thrus, those funds should also be paid out.