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contract accounting

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(Querist)
11 November 2008 Hi
Pls help me to in the folowing issue

My company is a trading company and it is having projects also.Majorly air conditioning projects each project may take years to compleate and 60 % of the project will be the inventory cost and 40% for instalation charges.
i would like to know, the accounting policy can be adopt for. presently while issuing the materials it is considered as Sale.
i belief if we choose contract accounting, the invoicing should not afect sales account.
Pls let me know in detail how the contract accounting works under this siuiation.

Thanks
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S.Srinivasaraghavan

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S.Srinivasaraghavan (Expert)
11 November 2008 How can you consider issue of materials as sales even before the propery covered therein is effectively transferred?
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Sudheesh

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Sudheesh (Querist)
11 November 2008 hi s.srinivas

ya...its wrong i just joined here, so i just want to know the correct treatmen.pls help me out
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