WIP

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vanitha (Querist)
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01 September 2009 Hi

Ours is an service company, everymonth we will account some portion of work executed as Work in process. Now I need to bill the same. can any one guide how to account the sales bill and whether we need to reverese WIP account.

AT THE END OF Every month i will do the following entry

WORK IN PROGRESS DR
TO INCREASE OR DECREASE IN UNBILLED REVENUE CR

can any one clarifiy this .

my email id is vanee_ind@yahoo.co.in

With rgds
Vanee

vrnanda

vrnanda (Expert)
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03 September 2009 Hi Vanitha,

To my understand your query is for unbilled revenue that book every month.
If that is the case.

As and when you book the unbilled revenue,

When your finalize the bill/complete the task, you need to book the Sales entry.

example is as follows:

a) Reverse the original unbilled entry that you have passed.
b) Account for the normal revenue
Customer A/C dr
To Revenue/Income A/c.

Just ping me in case you have any further queries/doubts in this or the other.

Regards,
V R Nanda