Invoicing against WIP
6/16/09 4:55 AM, Viewed by asker 6/21/09 8:25 PM
Total Views: 497
how to issue material to project and issue invoice later based on actual consumption in contracting companies. We need COGS to get updated at the time of invoicing as per the actual cost (Not issued cost). Thnxs for response - Sharaf
Answer
Inventory tracking, by its very nature is to COGS the materails as they pur on a customer invoice. This can be a headache if your business is not primarily driven by inventory management.
Instead, enter your cost bills and date them in the same period you will be invoicing for the costs of the materials.
Then be sure to run all of your reports in Accrual Basis.
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Please mark this answer as solved or post additional questions. Thanks so much!!!
Comment
3) Assign actual COGS to the Projects at the time of invoicing as to correlate the invoice and COGS (As working on fixed lump sum contract, no need of itemized details on the invoice)
Comment
We are maintainig inventory at warehouse and issue the material to varios projects as per the progress. Hence, need to achieve the following goals:
1) Track the inventory ordered
2) Track (Job wise) inventory that are issued from ware house to Projects and the remainig quantity at project after completion of project or at the end of period to calculate the percentage of progress (To be treated as asset)
3) Assign actual COGS to the Projects at the time of invoicing as to correlate the invoice and COGS
4) Generate the job profitability report / progress report
5) Track the back order (Purchase and pending delivery to site from warehouse)
6) Assign Non-Inventory and labour cost to projects
7) Compare project wise the estimated cost v/s actual cost