Hi there, new poster with a question I'm sure you'll be able to help with. I'm using quickbooks 2014 Premier.
I've started using % of completion revenue recognition as we have some larger design build projects lasting a quarter or so. Makes for more realistic reporting to the bank. These are largish pieces of machinery/equipment we make so COGS are mainly labour, steel from stock and commercial components we buy. I'm not trying to track WIP, just provide reporting better representing our activities.
I think I'm good with most of the concept, COGS are totalled monthly and debited, inventory credited, that amount grossed up and unbilled rev credited and unbilled A/R debited.
At the end of the project, on invoicing I make GL adjustments to adjust everything taken to date. Which is where I'm uncertain concerning unbilled revenue posted in the preceding months. at the end of the project, after invoicing, should I go back for each month and GL convert unbilled revenue to revenue?
thanks very much
I've started using % of completion revenue recognition as we have some larger design build projects lasting a quarter or so. Makes for more realistic reporting to the bank. These are largish pieces of machinery/equipment we make so COGS are mainly labour, steel from stock and commercial components we buy. I'm not trying to track WIP, just provide reporting better representing our activities.
I think I'm good with most of the concept, COGS are totalled monthly and debited, inventory credited, that amount grossed up and unbilled rev credited and unbilled A/R debited.
At the end of the project, on invoicing I make GL adjustments to adjust everything taken to date. Which is where I'm uncertain concerning unbilled revenue posted in the preceding months. at the end of the project, after invoicing, should I go back for each month and GL convert unbilled revenue to revenue?
thanks very much