Sample journal entries for work in progress

Below you see sample journal entries illustrating the steps to be performed when journalising the work in progress. The accounts mentioned do not have to be one account per type in Profit Projects: you can use multiple accounts for every account type. You can for instance create multiple ledger accounts for the cost price of work in progress and then specify how these accounts should be determined by Profit Projects.

Journalise an actual costing entry

To journalise an actual costing entry:

	2 - Project WIP cost price (if WIP is not split, this is 2 - Project WIP)
To	3 - Project cost price coverage

Example:

Work in progress cost journal

Entry type	Account	Account	Description	Amount D	Amount C
2	3100		WIP costs	300,00
3		6100	Coverage (hours/material)		300,00

Journalise a project revenue entry

The amounts on the Provisional project revenue and Revenue coverage accounts are always the same. This means that the Debtors to provisional project revenue (+ VAT) entry replaces the Debtors to revenue (+ VAT) entry that is created if work in progress entries are not used.

To journalise a (project) revenue entry:

	1 - Debtors
To	4 - Project revenue coverage (If you have indicated that the WIP coverage has to be split, this is account 5 - Provisional project revenue)

and

	4 - Project revenue coverage
To	8 - Project WIP revenue (if WIP is not split, this is 2 - Project WIP)

Example:

Work in progress revenue journal

Entry type	Account	Account	Description	Amount D	Amount C
1	10000		Debtor	476.00
4		6300	Provisional project revenue suspense account
		1500	VAT to be paid
AND
4	6310		Revenue coverage	400.00
8		3110	WIP revenues

Journalise WIP completion

If, for example, you carry revenues forward from sales invoices to the project administration, this results in one journal entry for the work in progress:

Revenue coverage
to Work in progress revenue

No invoice entry is created at this point because the invoice for the revenue has already been processed in the accounts directly. The ledger accounts for the work in progress are usually created as balance sheet accounts. The coverage accounts and the account for the provisional revenue are usually profit and loss accounts. However, this depends on how the accounting has been configured.

To journalise WIP completion:

	6 - Project costs
To	2 - Project WIP cost price (if WIP is not split, this is 2 - Project WIP)

and

	8 - Project WIP revenue (if WIP is not split, this is 2 - Project WIP)
To	7 - Project revenues

Example:

Work in progress completion journal

Entry type	Account	Account	Description	Amount D	Amount C
6	7000		Project costs	300.00
2		3100	WIP costs
8	3110		WIP revenues	400.00
7		8100	Project revenues

Journal entries from Financial

Journal entry directly from Profit Financieel:

	1 - Debtors
To	4 - Project revenue coverage (If you have indicated that the WIP coverage has to be split, this is account 5 - Provisional project revenue)

Example:

Revenue entry directly from the financial administration

Entry type	Account	Account	Description	Amount D	Amount C
	10000		Debtor	121.00
4		6300	Provisional project revenue suspense account		100.00
		1500	VAT to be paid		21.00