I work for a consultancy company and this is about WIP and accrued income.
Here is the scenario:
We have a master budget, and let's say at the beginning of April we have budgeted 100k of revenue for booked work.
At the end of April we have invoiced 50k all invoiced within the month of April.
In the first week of May, we invoiced a further 25k for April works which missed the month end cut off.
Thus there is 25k still not invoiced for the month of April which is still not yet invoiced (let's say half is complete and half isn't but it's all just not been invoiced as yet).
At this time we prepare the management accounts. Can someone please confirm if the following would be correct treatment as per the scenario I gave above if not could someone kindly correct me:
50k income
25k accrued income
25k WIP
Many thanks in advance all. Appreciate any comments
Here is the scenario:
We have a master budget, and let's say at the beginning of April we have budgeted 100k of revenue for booked work.
At the end of April we have invoiced 50k all invoiced within the month of April.
In the first week of May, we invoiced a further 25k for April works which missed the month end cut off.
Thus there is 25k still not invoiced for the month of April which is still not yet invoiced (let's say half is complete and half isn't but it's all just not been invoiced as yet).
At this time we prepare the management accounts. Can someone please confirm if the following would be correct treatment as per the scenario I gave above if not could someone kindly correct me:
50k income
25k accrued income
25k WIP
Many thanks in advance all. Appreciate any comments