![]() ![]() In the above example, actual costs-to-date are $134.00 and the first progress claim invoice is for 20% ($404.80), then the journal will include $270.80 Credit to the Progress Claim account ie the business has made a claim for work that it has not yet done.Ĭ arrying on with the example above further costs of $1684 are added to the job (ie total costs-to-date are $1818, of which $1684 are unbilled), and a progress claim invoice for 60% ($1214.40) is created. If the % of Quoted option has been selected when the first invoice is created this is what the screen will look like: In both examples, the resulting journal will include a Credit for $233 posted to the Progress Claims account, to bring the balance in that account back to zero (for that job).Īny profit/loss on the job is reported through the Job Detail report and has no bearing on the Progress Claim account. In this example of a final claim the job costs came in over quote: Note that the job costs came in under quote and this reflects in the Job Detail report. This is a negative liability or an asset – ie funds that the business can expect to invoice in the near future, but which are not reflected in any work-in-progress reporting.Īt the end of the job, when all costs have been added and a final invoice created, the balance that remains in the Progress Claims account for that job is cleared out.īelow is an example where the final claim invoice is raised. The journal now will include a Debit to the Progress Claims account of $599 (the difference between 15) and the total effect is that the Progress Claims account has a Debit balance of $233. So carrying on with the example above further costs of $1599.00 are added to the job (ie Total Sales Value of Costs is $1733, of which $1599 are unbilled), and another progress claim invoice, for $1000, is created: This is separate from any work-in-progress which has not been invoiced.Īs more costs are assigned to the Job, further progress claims invoices can be created, and each time the variance between the actual costs and the claimed costs is calculated, and a posting made to the Progress Claims account. ![]() So in the above example, where actual costs-to-date are $134.00, if the first progress claim invoice is $500.00, then the journal will include $366.00 Credit to the Progress Claim account ie the company has claimed for work to the value of $366.00 in advance of work being done. If the invoice is for less than the actual costs recorded a Debit is recorded and if the invoice is for more than the actual costs recorded a Credit is recorded. It will also record the difference in the Progress Claims account. When the invoice is processed the Financials will record the debt against the Customer Control account, and the Sales and GST accounts will also be posted to. If the Fixed Amount option has been selected when the first invoice is created the screen will look similar to this: When the final Progress Claim invoice is raised there is no need for any posting to the Progress Claim account. There will be no postings to the Progress Claims account as the business is not claiming any funds in advance of work being done, and any work-in-progress is recorded separately. When the invoice is processed the Financials will record the debt against the Customer Control account, and the Sales and GST accounts will also be posted to.Īs more costs are assigned to the Job, further invoices can be created, and each time the financial transaction is the same – Customer Control account, and Sales and GST. If the Actuals option has been selected when the first invoice is created the screen will look similar to this: shows the number of progress invoices.Įnter the products as used on the job. % of Quoted (only available if a quote has been entered against the job).Fixed $ Amount (often used when a payment schedule has been agreed with the quote acceptance).You need to specify if the Progress Claim will be based on When a job is created, on the Invoicing tab, you can specify if Progress Claims are to be used. Admin / Defaults / Manage Financial Defaults The Financial Defaults – Progress Claims (+/-) must be linked to this account. It must be GST inclusive, not GST exempt. This would normally be a Current Liability account in the Balance Sheet, but it can be a Current Asset account. SetupĪ General Ledger account must be set up to hold the progress claims value. ![]() This is additional to, and separate from, the value of work-in-progress which is the valuation of work/products assigned to jobs and not yet invoiced. Progress Claim accounting is used to record the difference between the value of invoices issued and the work/product that was billed to jobs. ![]()
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